TORONTO (Bloomberg) - Canadian stocks rose for a third day as precious-metal stocks gained on demand for a haven from European government debt concerns and uranium producers advanced after the nuclear fuel hit a two-year high.

Barrick Gold Corp., the world's largest producer, increased 4.7 percent as the metal surpassed $1,400 an ounce for the first time. Cameco Corp., the world's second-largest uranium producer, climbed 8.5 percent after boosting its production forecast. Valeant Pharmaceuticals International Inc., Canada's largest drug developer, fell five percent after reporting third-quarter revenue that trailed analyst estimates last week.

The Standard & Poor's/TSX Composite Index rallied 127.37 points, or one percent, from a two-year high to 13,052.48.

"There could be some people questioning whether some more austerity is not solving the problem" in Europe, said Todd Johnson, who helps oversee C$230 million ($229 million) as a money manager at BCV Asset Management in Winnipeg, Manitoba. "You could see a safe haven trade: 'I can't trust currencies anymore; I'm going to own gold.'"

The S&P/TSX rose two percent last week, the most in two months, as the US Federal Reserve announced a $600 billion plan of asset purchases. The index surged 17 percent in the four months ending November 5, led by raw-materials producers, as the US dollar slumped on concerns that Fed stimulus would increase the money supply and reduce the value of the greenback.

Olli Rehn, the European Union's commissioner for economic and monetary affairs, is in Dublin today to discuss Ireland's plan to cut spending and raise taxes to trim its deficit. The difference in yield, or spread, between Irish and German 10-year bonds climbed to 548 basis points today, from 362 basis points on October 18.

The S&P/TSX Gold Index gained 3.3 percent yesterday, extending its 2010 advance to 27 percent. Barrick increased 4.7 percent to a two-year high of C$51.48. NovaGold Resources Inc., which explores in Alaska and British Columbia, rose for an eighth day, soaring 10 percent to C$14.68. Silver reseller Silver Wheaton Corp. rallied 7.4 percent from a record to C$35.40 as the metal climbed at least 2.7 percent for the third-straight day.

Ventana Gold Corp., which owns the La Bodega gold project in Colombia, surged 15 percent to C$10.80 after forecasting average annual production of 347,000 ounces of gold equivalent for the mine's first six years.