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TSX ends down 0.3% at 30,275.76

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Materials group loses 3.2% as gold falls

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Technology adds 1.2%

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MEG's shares gain 3.3% as takeover fight ends

(Updates at market close)

By Fergal Smith

TORONTO, Oct 27 (Reuters) - Canada's commodity-linked

main stock index edged lower on Monday as the price of gold

pulled back below $4,000 per ounce weighing on high-flying metal

mining shares.

The S&P/TSX composite index ended down 77.31

points, or 0.3%, at 30,275.76 even as U.S. markets notched

gains.

Gold fell 2.9% to about $3,992 per ounce as signs of

a thaw in U.S.-China trade tensions reduced some of the

bullion's safe-haven appeal. As recently as October 20, gold

touched a record high of 4,381.21.

"We've got a classic pullback on gold and the base metals

and silver," said Greg Taylor, chief investment officer at

PenderFund Capital Management. "The materials sector, which has

helped the Toronto market higher most of the year, is taking

some profits."

The materials group, which includes metal mining

shares, lost 3.2%, with shares of Agnico Eagle Mines Ltd ( AEM )

down 5%.

Industrials were also a drag, falling 0.5%.

Technology was among the bright spots, adding

1.2%. Heavily weighted financials were up 0.6% and energy

ended 0.5% higher.

The price of oil held on to much of last week's

strong gains, settling 0.3% lower at $61.31 a barrel.

Oil sands company Cenovus Energy ( CVE ) has struck

a deal with rival Strathcona Resources ( STHRF ) that will see

the smaller company vote its shares in favor of Cenovus' bid for

MEG Energy MEG.TO, ending a bitter takeover fight that

has been the talk of the Canadian oilpatch for months.

MEG's shares added 3.3%, Strathcona was up 2.9% and Cenovus

ended 0.3% higher.

Wall Street's main indexes posted record closing highs as

investors were hopeful about the prospects for a U.S.-China

trade deal and looked forward to a week packed with high-profile

technology earnings and a widely expected U.S. interest rate

cut.

The Bank of Canada is also expected to lower interest rates

this week, with the policy decision set for Wednesday.