TSX rises, gold stocks offset RIM decline

TORONTO (Reuters) - Canada's main stock index edged higher on Tuesday, lifted by a rally in gold shares, which rose with gold's price, as investors speculated on U.S. Federal Reserve actions as it begins a meeting on interest rates.

The gains were, however, kept in check by a 7.5 percent decline in Research In Motion Ltd shares, triggered by investor caution ahead of the BlackBerry 10 launch.

The market pullback follows a recent rally in the stock in the run-up to the launch.

'The stock has been overbought of late. It has pulled back with profit taking.' said John Ing, president of Maison Placements Canada. 'The proof will be in the pudding as to whether it will sell. There are very high expectations.'

The Toronto Stock Exchange's S&P/TSX composite index <.gsptse> was up 5.20 points, or 0.04 percent, at 12,821.11. Six of the 10 main sectors on the index were in the red.

While the Fed is not expected to change its stance after deciding only in December to loosen conditions further, investors are watching to see if changes in the membership of the policy-setting committee for 2013 could signal a shift in the future.

'The expectation is that little will change other than probably some comment with respect to the eventual exit (from the stimulus). Right now it will be a reaffirmation of the low interest rate policy,' Ing said.

He said his expectation for the gold sector this year is quite bullish. 'Gold has been pretty good refuge in order to maintain, to hedge the depreciation in the value of currencies,' he said.

The materials sector, which includes mining stocks, played the biggest role in leading the market higher, rising 0.4 percent. The group was boosted by a 0.5 percent rise in gold prices.

Goldcorp Inc rose 2.3 percent to C$36.36, and Kinross Gold gained 1.6 percent to C$8.49.

The market was also supported by a 3.9 percent rise in Canadian Pacific Railway Ltd , which reported a sharp drop in quarterly profit on Tuesday as restructuring charges ate into earnings but said its aggressive efficiency push is poised to pay off. The stock climbed to C$117.22.

(Editing by Kenneth Barry)