July 21 (Bloomberg) -- Canadian stocks fell for the first time in seven days as a rally in gold producers stalled and Research In Motion Ltd. slumped after saying it was prevented from bidding for Nortel Network Corp.’s wireless unit.

Research In Motion, the maker of the BlackBerry smartphone, declined 1.4 percent, the first loss in five days. Goldcorp Inc., First Quantum Minerals Ltd. and Kinross Gold Corp. retreated by at least 1.1 percent. Canadian National Railway Co. gained after reporting second-quarter earnings that met analysts’ estimates.

The Standard & Poor’s/TSX Composite Index fell 25.39 points, or 0.2 percent, to 10,515.32 at 4:10 p.m. in Toronto. The benchmark index had advanced 6.4 percent last week and 39 percent through yesterday from a five-year low on March 9.

“People are looking for positives to try to keep the rally going, but ultimately there are a few setbacks,” said Michael Sprung, president of Sprung & Co. in Toronto, which manages about C$60 million. “The economy is still deteriorating in a lot of sectors.”

Gold’s gains may end as the metal meets two resistance points, Standard Bank Group Ltd. said in a report yesterday, citing trading patterns. Sell orders tend to be clustered at the $965.25 and $995 levels, the bank’s technical analyst Darran Grabham wrote.

Gold futures for August delivery fell $1.90 to $946.90 an ounce on the New York Mercantile Exchange’s Comex division. Goldcorp slumped 1.1 percent to C$41.55, while Kinross Gold retreated 1.9 percent to C$22.26. First Quantum Minerals dropped 7.9 percent to C$64.15.

Bankruptcy Auction

Research In Motion fell 1.4 percent to C$81.99. Nortel and its bankruptcy advisers wanted Research In Motion to agree not to bid for any other Nortel assets for one year as a condition for participating in the July 24 auction, Waterloo, Ontario- based RIM said yesterday in a statement.

Canadian National, the nation’s largest railroad, said it earned 76 cents a share, matching the average estimate of analysts in a Bloomberg survey.

The company reported improvements since May in moving products such as coal and grain, a sign the country’s economy may be turning around, the Globe and Mail reported. Montreal- based Canadian National said the gains show “momentum” building in the second half, the newspaper said.

The shares added 2.1 percent to C$50.55, the highest closing price since May 4. Canadian Pacific Railway Ltd. advanced 4 percent to C$43.55.

Canadian National said carloads declined 22 percent in the quarter, with biggest losses coming in metals, minerals, automotive and forest products traffic.

“The CNR earnings came in within estimates, but I think people were somewhat shocked by the revenue declines in their various business segments,” Sprung said. “That’s caused a little more of a muted response in the market today.”

To contact the reporters on this story: Kayla Carrick in New York at kcarrick1@bloomberg.net.

Last Updated: July 21, 2009 16:50 EDT