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TSX ends up 1.1% at 23,475.14

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Index posts an all-time closing high

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Materials group jumps 4.1% as gold rises

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Price of oil settles 2.5% higher

(Updates at market close)

By Fergal Smith

Sept 12 (Reuters) - Canada's main stock index rose to a

record high on Thursday as higher gold prices boosted metal

mining shares and investors grew confident of a "soft landing"

for the economy.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 263.97 points, or 1.1%, at 23,475.14, moving

past the record closing high it posted on Aug. 26.

"The TSX is firing on all cylinders today," said Elvis

Picardo, a portfolio manager at Luft Financial, iA Private

Wealth.

"The materials group is leading the charge ... led by the

precious metals miners. I think investors are finally waking up

to this stealth rally in gold and silver."

The price of gold rose 1.8%, increasing its gain

since the beginning of the year to 24%, while the materials

sector, which includes metal mining shares and fertilizer

companies, jumped 4.1%.

"We have seen concerted buying both sides of the border this

week. That would indicate that investors are quite confident

about the U.S. soft landing scenario playing out," Picardo said.

Wall Street's main indexes also rose ahead of the expected

start of Federal Reserve interest rate cuts next week.

All ten major sectors on the TSX ended higher, with

industrials adding 1.1% and energy up 0.8%.

U.S. crude futures settled 2.5% higher at $68.97 a

barrel as producers assessed the impact on output in the U.S.

Gulf of Mexico after Hurricane Francine tore through offshore

oil-producing areas.

Air Canada ( ACDVF ) said that the federal Canadian government

should be prepared to intervene to prevent a looming pilots'

strike that the carrier said could cause disruption for weeks to

come. Shares of the airline rose 1.9%.