Stocks soar as September rally continues

North American markets extended their rally into a fourth week Monday and gold prices pushed still higher from last week's record highs.

The Toronto Stock Exchange's benchmark S&P/TSX composite index closed up 69.9 points, or 0.6 per cent, to 12,234.5.

In New York, the Dow Jones industrial average rose 145.77 points, or 1.37 per cent, to 10,753.62.

The S&P 500 rose 17.12 points, or 1.52 per cent, to 1,142.71, taking it above the high end of its recent trading range of 1,131. Technical analysts see that as a hopeful sign for the market.

The Nasdaq composite index rose 40.22, or 1.74 per cent, to 2,355.83.

The Dow has risen three straight weeks and is up nearly seven per cent so far this month. However it's still more than four per cent below its high for the year.

Traders were also encouraged by an announcement from a group of economists declaring that the most recent recession ended in June 2009.

The December bullion contract on the New York Mercantile Exchange ended $3.30 to $1,280.80 US an ounce.

The price of the precious metal has been soaring in recent sessions and hit three all-time highs last week alone.

Crude oil also made a strong upward move, with the October contract up $1.20 to $74.86 US a barrel on the New York Mercantile.

The Canadian dollar rose 0.19 of a cent to 97.15 cents US.

Traders await Fed moves

The gains came as investors awaited more moves by the Federal Reserve on Tuesday to prop up the economy.

There is a growing expectation that the Fed's rate-setting committee could relaunch programs to buy Treasury securities in an effort to further stimulate the struggling economy.

At the very least, it might hint at future plans to make such moves following its one-day meeting Tuesday.

"The Fed will hint at it, put it on the table, but not do anything," said Brian Gendreau, a market strategist at Financial Network Investment Corp.

If the Fed starts buying bonds again it could drive interest rates lower, enabling companies and consumers to get cheaper loans.

The Fed had a similar bond-buying program in place earlier this year. Treasury prices were little changed Monday.

The S&P briefly crossed the 1,131 level on Friday for the first time since June 21, but not for long enough to convince analysts that the market had enough momentum to surge higher.

Many automatic buy and sell orders are set around market milestones such as these, and investors watch those levels closely for clues about which way the market may go next.

Not everyone convinced

On the other hand, some analysts aren't convinced that the rally will last.

A slower, steady rise is more encouraging because it means traders are reacting to a consistent stream of upbeat news, said Daniel Penrod, a senior industry analyst at the California Credit Union League.

"We need more tortoise than hare in the market," Penrod said.