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TSX ends down 0.4% at 22,110.11

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Touches its lowest intraday level in two weeks

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Energy falls 1.9% as oil settles 1.4% lower

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Gold notches new all-time high

(Updates at market close)

By Purvi Agarwal and Fergal Smith

April 11 (Reuters) - Canada's main stock index lost

ground for a second straight day on Thursday as lower oil prices

weighed on energy shares, but the index clawed back much of its

earlier decline.

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

ended down 89.02 points, or 0.4%, at 22,110.11, after

touching its lowest intraday level since March 27 at 21,985.68.

The recovery from session lows came as U.S. producer price

data revived hopes that inflation remains in a cooling trend.

Investors were rattled on Wednesday by data showing U.S.

consumer prices rose more than expected last month.

"Anything that shows that inflation is not as resilient as

yesterday's print will be helpful for U.S. (interest) rate cut

prospects, which will be helpful for our (Canadian) prospects,"

said Scott Blair, chief investment officer at CWB Wealth.

The energy sector fell 1.9% as the price of oil

settled 1.4% lower at $85.02 a barrel. Oil's recent rally

has stalled since the commodity notched a six-month high last

Friday.

Heavily weighted financials also fell, ending 0.4% lower

, and industrials lost 0.9%.

Technology was one of the bright spots, rising 0.5

. And the materials group, which includes metal miners

and fertilizer companies, added 0.3% as gold climbed

to a fresh record high.