TORONTO (Bloomberg) - Canadian stocks rose, heading for a third straight monthly gain, as gold producers advanced on demand for alternative investments after US consumer confidence fell.

Barrick Gold Corp., the world's largest producer, rose 1.7 percent as the precious metal jumped to an all-time high of $1,309.80 an ounce. Kinross Gold Corp. increased 1.3 percent.

Research In Motion Ltd., declined 2.8 percent, the biggest drop in the benchmark stock index today, after saying its BlackBerry PlayBook tablet will be released in the US in early 2011, missing the holiday spending season.

The Standard & Poor's/TSX Composite Index gained 31.19 points, or 0.3 percent, to 12,229.79 as of 2:23 p.m. in Toronto, for a 2.5 percent monthly increase. An index of gold and materials stocks rebounded from an earlier decline after the 10 a.m. US confidence report, gaining 1.3 percent for the biggest rally in the S&P/TSX.

"There's a volatility going back and forth in the market," said Sadiq Adatia, who helps manage C$12 billion ($11.6 billion) as chief investment officer at Russell Investment Canada in Toronto. "People are spending their money picking up names that are a little bit more secure."

Confidence among US consumers fell in September to the lowest level in seven months as Americans became more pessimistic about the labour market. The Conference Board's confidence index declined to 48.5 from 53.2 the prior month.

The median estimate of economists in a Bloomberg News survey was for a decline to 52.1.

"Risk appetite may not be fully there, but neither is risk aversion," Mr. Adatia said. "Fourth quarter is historically a pretty strong quarter for companies, but people are just making sure they have strong names on their sheet."

Barrick rose 1.7 percent to C$47.78 as gold rose to a record for the eighth time in two weeks as the U.S. dollar dropped to the lowest level since early February. Kinross, Canada's third-biggest producer, increased 1.3 percent to C$19.49.

Ivanhoe Mines Ltd. rose 3.7 percent to C$24.74. The mining company drilling at the Oyu Tolgoi project in Mongolia found almost one kilometre of near-continuous copper and gold mineralisation. The site is on schedule for production in late 2012, the company said in a statement.

Osisko Mining Corp. gained five percent to C$14.42, the biggest gain in the S&P/TSX, after GMP Securities LP equity analyst Andrew Mikitchook gave the gold exploration company a new "buy" rating and a share-price estimate of C$17.25.

Richmont Mines Inc. advanced 4.2 percent to C$5.24. The gold exploration and development company said it started a 5,500-metre drilling program on its Monique Property, located near Val-d'Or, Quebec.

RIM, the country's biggest technology company, declined 2.9 percent to C$48.24. The Waterloo, Ontario-based company is racing to get its tablet into stores as Hewlett-Packard Co., Samsung Electronics Co. and Motorola Inc. build similar devices to emulate the success of the Apple Inc.'s iPad.

Richelieu Hardware Ltd. gained 0.4 percent to C$27.17, after hitting a record intraday price of C$27.35 earlier in the day. The maker of hardware for cabinets, furniture, windows and doors said in a statement its five acquisitions this year will boost sales by C$70 million annually.