Nov. 3 (Bloomberg) -- Canadian stocks gained as the purchase of 200 metric tons of gold by India’s central bank boosted mining companies and Research In Motion Ltd. bounced back from an analyst downgrade yesterday.

Barrick Gold Corp., the largest producer of the metal, rallied 6.6 percent as the price of bullion rose to a record. RIM, the BlackBerry maker, surged 6.2 percent as at least five analysts said they were keeping “buy” or equivalent ratings on the stock. Canadian Pacific Railway Ltd., the country’s second- biggest railroad, gained 3.2 percent after Berkshire Hathaway Inc. agreed to buy Burlington Northern Santa Fe Corp.

“Gold has gone crazy,” said Bruce Campbell, president of Campbell & Lee Investment Management Inc. in Oakville, Ontario. “I think the market didn’t perceive that India was going to be a buyer. The reason it’s up is the surprise.”

The Standard & Poor’s/TSX Composite Index gained 147.55 points, or 1.4 percent, to 11,025.90.

Gold prices have increased 34 percent since Jan. 15 as a falling U.S. dollar widened the appeal of commodities as a hedge. S&P/TSX raw-materials stocks have jumped 36 percent during that period. Seven of the world’s 20 largest publicly traded gold producers are based in Canada, and bullion-mining companies represent 9 percent of Canadian stocks by market value.

Gold rose for a second day on the International Monetary Fund’s sale of bullion to India. The precious metal added 2.9 percent to $1,084.90 for its biggest one-day increase since March 19.

Gold Miners

Barrick advanced 6.6 percent to C$41.97. Goldcorp Inc., the second-largest gold company in Canada, gained 7 percent to C$42.96. Ventana Gold Corp., which explores for the precious metal in Colombia, soared 13 percent to C10.11 after announcing a new discovery.

RIM, Canada’s largest technology company, rallied 6.2 percent, the most since April 16, to C$63.89. Yesterday, the shares slumped 5.8 percent after Citigroup Inc. analyst Jim Suva reduced his rating on RIM to “sell.”

Today, analyst Richard Tse of National Bank of Canada reiterated his “outperform” rating on the smart-phone maker, saying its decline makes it a potential takeover candidate for suitors including Microsoft Corp.

Canadian Pacific added 3.2 percent to C$48.75 as Warren Buffett’s Berkshire said it would pay a premium of 31 percent over Burlington’s closing price from yesterday. Canadian National Railway Co. advanced 1.8 percent to C$53.50.

Lumber company West Fraser Timber Co. Ltd. surged 7.2 percent to C$29.40 after reporting a third-quarter loss 31 percent narrower than the average estimate of analysts surveyed by Bloomberg. The company said operating results are likely to improve in the fourth quarter because of strong demand and pulp pricing.

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

Last Updated: November 3, 2009 16:22 EST