Canada's main stock index fell on Wednesday, weighed by declines for financial shares, Valeant Pharmaceuticals International Inc (VRX.TO) and Canadian National Railway Co (CNR.TO), while gold-mining stocks were boosted by higher gold prices.

The largest decliner on the index was Valeant, down 11.6 per cent at $24.51, after Goldman Sachs gave the shares a "sell" rating.

CN Rail fell 2.1 per cent to $98.01 after reporting a lower-than-expected adjusted profit for the fourth quarter, hurt by the heavy expenses it has incurred to grow its business.

The financial services sector, which accounts for more than one-third of the index's weight, fell 0.6 per cent.

The Toronto Stock Exchange's S&P/TSX composite index closed down 73.34 points, or 0.45 per cent, at 16,284.21.

The energy group dipped 0.3 per cent even as oil prices were boosted by a record 10th straight weekly decline in U.S. crude inventories.

U.S. crude oil futures settled 1.8 per cent higher at US$65.61 a barrel.

Eight of the index's 10 main groups lost ground.

The materials group, which includes precious and base metals miners and fertilizer companies, added nearly 1 per cent.

Gold prices reached their highest level in more than four months after a U.S. official welcomed a weaker dollar and investors sought insurance against uncertainty.

Spot gold rose 1.3 per cent to 1,358.57 an ounce, while Novagold Resources Inc (NG.TO) climbed 8.3 per cent to $5.38 and Yamana Gold Inc (YRI.TO) advanced 2.5 per cent to $4.54.

Marijuana producer CanniMed Therapeutics Inc (CMED.TO) jumped 11.7 per cent to $41.90 after Aurora Cannabis Inc (ACB.TO), Canada's second-biggest producer, agreed to buy the company for $1.1 billion.