Nov. 6 (Bloomberg) -- Canadian stocks rose for a fourth day, led by gold producers, as bullion prices rallied to a record and Magna International Inc. reported a surprise quarterly profit.

Magna, Canada’s biggest auto-parts company, jumped 14 percent, the steepest advance in the Standard & Poor’s/TSX Composite Index. Barrick Gold Corp., the world’s top bullion producer, gained 3.1 percent as the metal surged after a report showed U.S. employers cut more jobs than forecast in October, boosting demand for gold as a store of value. Bank of Nova Scotia, the country’s third-largest lender, lost 0.8 percent as unemployment in the U.S. and Canada topped estimates.

“The financials are taking a hit because of the economy, but gold seems to be trading more on a technical basis, which helps the Canadian market because we have more of a significant gold weighting,” said Blair Falconer, who helps manage C$16 billion ($14.9 billion) as a portfolio manager at HSBC Securities (Canada) Inc.

The S&P/TSX rose 69.72 points, or 0.6 percent, to 11,250.42.

The benchmark index advanced 3.1 percent on the week after India’s central bank bought 200 metric tons of gold from the International Monetary Fund, boosting the metal’s price. Raw- materials producers make up almost 20 percent of Canadian stocks by market value.

Exceeding Forecasts

The U.S. jobless rate rose to a 26-year high of 10.2 percent in October, higher than all 81 forecasts from economists surveyed by Bloomberg. The September unemployment rate was 9.8 percent.

Gold gained for a fifth day, adding 0.6 percent to $1,095.70 an ounce. Barrick increased 3.1 percent to C$44.83. Goldcorp Inc., the Canada’s second-largest bullion producer, rose 3 percent to C$44.48. Gammon Gold Inc., which explores for the metal in Mexico, surged 7.6 percent to a 15-month high of C$10.57.

There’s a mentality among momentum traders, particularly in the commodities or currency market, to “buy the highs because it’s going to go higher,” Falconer said. “An all-time high is a sign things are going the right direction for you.”

Oil and gas producer Canadian Natural Resources Ltd. advanced 3.7 percent to C$70.20 after analyst Thomas R. Driscoll of Barclays PLC boosted his rating on the company to “overweight” from “equal weight,” citing 2010 production projections and a drop in the share price.

Molybdenum Reserves

Molybdenum producer Thompson Creek Metals Co. Inc. soared 8.6 percent to C$12.74 after announcing a 30 percent increase in reserves of the metal used in steel production. Analyst George Topping of Blackmont Capital Inc. raised his rating on the company to “outperform” from “sector perform.”

Canada’s eight publicly traded banks all declined after the increases in unemployment in the U.S. and Canada, where the jobless rate rose to 8.6 percent from 8.4 percent in September.

Bank of Nova Scotia declined 0.8 percent to C$46.77 after the release of the economic data, after seven days of gains. Canadian Western Bank, the eighth-largest lender in the country, dropped 1.4 percent to C$21.62.

Manulife Financial Corp., Canada’s largest insurer, gained 3.5 percent to C$20.55 after having its rating increased at Royal Bank of Canada, National Bank of Canada and Credit Suisse Group AG. Manulife shares fell 3.6 percent yesterday after the company reported an unexpected quarterly loss.

Magna, which was poised to buy General Motors Co.’s Opel division before GM decided not to sell it, advanced 14 percent to C$53.76 after reporting a third-quarter profit of 45 cents a share. Analysts surveyed by Bloomberg had estimated a loss of 21 cents a share, on average, excluding certain items.

Analyst Fadi Chamoun of UBS AG raised his rating on Magna to “buy” from “neutral,” telling clients GM’s decision not to sell Opel allows the Canadian company to return its focus to parts-making as car sales improve.

Toronto-area auto-parts manufacturer Martinrea International Inc., which reports quarterly earnings next week, jumped 11 percent to a 17-month high of C$8.40.

To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.

Last Updated: November 6, 2009 16:25 EST