TORONTO - The Toronto stock market closed slightly lower Monday, weighed down by weaker commodity prices.

The S&P/TSX composite index lost 21.17 points to 11,489.63, with the market seeing losses in resources.

Losses were led by the metal and gold sectors as gold closed down $5.50 at US$1,164. On the TSX, Barrick Gold Corp. (TSX:ABX) faded 47 cents to C$44.63 while Goldcorp Inc. (TSX:G) moved down $1.10 to $43.56.

The Canadian dollar moved up 0.45 of a cent to 94.98 cents U.S. a day before the Bank of Canada makes its next announcement on interest rates.

Analysts say the tepid session comes at a time when investors may be looking to wind down their trading positions and book some profits, especially as this time last year most faced hefty losses.

The strong rally that ran along with scarcely a break since early March has left the TSX up about 28 per cent year to date while the Dow is ahead 18 per cent.

Steve Uzielli, portfolio manager, director Scotia McLeod Equity Advisory, said investors are looking for reasons to sell stocks.

"(But) our general view hasn't changed in that the trend will still be higher but there will be individual situations that are ahead of themselves and we have had a good run. The upside potential is more limited now than it was earlier in the year for sure," Uzielli said.

The telecom sector led advancers, up 1.31 per cent. Rogers Communications (TSX:RCI.B) was up 65 cents to $33.71. Rogers said Friday it will advertise itself as "Canada's reliable network," after a B.C. appeal court upheld a decision to force the company to drop the word "most" from its two-year-old slogan.

The industrials sector rose just over one per cent with Canadian National Railways (TSX:CNR) ahead 82 cents to $58 and Bombardier Inc. (TSX:BBD.B) up 18 cents to $4.73.

Market heavyweight Research In Motion (TSX:RIM) also helped limit losses on the TSX, rising $1.34 to C$63.40 after the company said it would form a partnership with Digital China to expand availability of the BlackBerry.

RIM reports quarterly earnings next week.

"I think it will be an important indicator of the stability of the company, which we're still quite confident in," Uzielli said.

The TSX energy sector was off 1.22 per cent as the January crude contract on the New York Mercantile Exchange fell for a fourth session, down $1.54 to US$73.93 a barrel. Suncor Inc. (TSX:SU) declined $1.15 to C$36.76.

The base metals sector was down 1.96 per cent with March copper down three cents to US$3.21 a pound. Teck Resources (TSX:TCK.B) declined 85 cents to $35.70.

The TSX Venture Exchange fell 16.06 points to 1,434.4.

New York markets were also weak as the Dow Jones industrial average inched up 1.21 points to 10,390.11. The Nasdaq composite index fell 4.74 points to 2,189.61 while the S&P 500 index declined 2.73 points to 1,103.25.

On the economic front, Statistics Canada says the value of Canadian building permits rose to $6.1 billion in October, up 18 per cent from the previous month.

The agency says the sharp increase was mainly a result of gains in the value of non-residential permits and in construction intentions for single-family dwellings.

The prospect of rising interest rates also held investor focus. A much better than expected U.S. employment report for November released on Friday raised worries that the Fed may start to withdraw some of its stimulative measures -- including interest rates near zero -- sooner than anticipated. The Fed holds its next meeting on interest rates next week.

But on Monday, Fed chairman Ben Bernanke said interest rates will remain low as the economy proceeds on a slow recovery. Bernanke said in a speech before an economic group that forces like unemployment and tight credit will hold the economy to "moderate" improvements.

In other corporate news, Franco-Nevada Corp. (TSX:FNV), a Toronto company which owns stakes in numerous gold mines, has made an unsolicited all-cash offer to acquire Denver-based gold company International Royalty Corp. (TSX:IRC) for about $639 million. International Royal shares soared $2.35 or 49.89 per cent to $7.06 while Franco-Nevada shares pulled back $1.87 to $26.30.

U.S. fertilizer company CF Industries Holdings Inc. (NYSE:CF) said Monday it had increased its offer for rival Terra Industries Inc. (NYSE:TRA). CF, which is fending off an unwanted takeover bid by Agrium Inc. (TSX:AGU), is now offering to acquire Terra for US$36.75 in cash and 0.1034 of a share of CF stock for each Terra share.

In New York, CF shares rose $1.01 to US$89.56 while Terra shares ran ahead $2.22 to US$41.27. Agrium stock was up $2.81 at C$63.79 on the TSX.