TORONTO (Bloomberg) - Canadian stocks rose for a fifth day, led by material and energy producers, as inflation concerns and a weaker US dollar boosted gold prices and Canadian factory sales increased the most in 11 years.

Barrick Gold Corp., the world's largest producer, gained 1 percent. Base-metals miner Teck Resources Ltd. added 2.6 percent. Suncor Energy Inc., Canada's largest energy company, increased 2.1 percent to contribute the most to the Standard & Poor's/TSX Composite Index's advance.

"We're in a situation where the risk appetite is increasing and people are willing to go away from the US dollar into commodities and into other countries," said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc. in Toronto, which manages C$4 billion.

The S&P/TSX rose 59.77 points, or 0.5 percent, to 11,555.6. The S&P/TSX has outgained the S&P 500 this year 29 percent to 18 percent, as commodities rebounded on demand from emerging markets and signs of economic recovery in developed economies. Energy and raw-materials companies make up 44 percent of the Canadian stock benchmark by market value.

Helped by a 48 percent surge in automotive output, Canadian factory sales increased 5.5 percent to C$41.7 billion ($38.7 billion) in July, Statistics Canada said yesterday in Ottawa. The median forecast of 18 economists surveyed by Bloomberg was for a 2.5 percent increase in factory sales.

Alternative Investment

Gold jumped 1.4 percent to $1,020.20 an ounce in New York, a record settlement price, on concern that a global economic recovery may stoke inflation and on a drop by the dollar that boosted demand for the metal as an alternative investment.

The raw-materials industry led the 10 groups on the S&P/TSX with a 0.8 percent gain.

Barrick Gold rose one percent to C$41.09. Iamgold Corp. added 3.3 percent to an all-time high of C$16.74. European Goldfields Ltd., which produces the metal in southeast Europe, led S&P/TSX stocks by rallying 11 percent to C$4.33.

Base metals advanced on speculation the US economy has returned to growth. Copper added 3.2 percent to $2.9365 a pound in New York.

Teck Resources Ltd., which mines copper, zinc and coal, rose 2.6 percent to C$30. Equinox Minerals Ltd., owner of a copper mine in Africa, jumped 7.3 percent to C$3.25.