Canadian stocks fell for a second day, led by metals producers, as gold prices dropped to the lowest level in more than two months.

Goldcorp Inc. and Barrick Gold Corp. fell at least 1.8 percent as speculation that the U.S. economy will rebound eroded the appeal of precious metals as an alternative investment. Stocks pared their losses in the final hour of trading as Research In Motion Ltd. climbed more than 7 percent after Bank of America Corp. said the maker of the BlackBerry phone will increase market share.

“Commodities obviously are one of the major drivers,” said Gavin Graham, who helps oversee C$42 billion at Bank of Montreal Asset Management in Toronto. “What you’re seeing is a reflection of weakness in commodity prices.”

The Standard & Poor’s/TSX Composite Index fell 49.59 points, or 0.6 percent, to 9,016.17 in Toronto, paring its 2009 gain to 0.3 percent. The benchmark has climbed 19 percent since falling to a 5 ½-year low on March 9.

Raw-materials producers and financial stocks, which account for 46 percent of the nation’s benchmark stock index, contributed the most to today’s decline.

Goldcorp lost 1.8 percent to C$37.40, leading raw-materials producers to a 2.9 percent decline, the steepest among 10 industries in the S&P/TSX. Barrick Gold lost 4.6 percent to C$35.61. Gold futures for June delivery fell $24.50, or 2.7 percent, to $872.80 an ounce on the Comex division of the New York Mercantile Exchange as last week’s rally in equities curbed demand for a haven from stock market losses.

Loan Losses

Financial stocks fell 0.8 percent, contributing the most to the benchmark’s decline after commodity producers, as Mike Mayo, analyst at Calyon Securities, advised selling bank shares, saying government measures to shore up lenders may not help as much as expected and loan losses will exceed levels from the Great Depression.

Royal Bank of Canada, the country’s biggest lender, lost 0.7 percent to C$38.20. Toronto-Dominion Bank, Canada’s second- largest bank, dropped 2 percent to C$45.26.

Canadian Finance Minister Jim Flaherty will meet with chief executive officers of the country’s biggest banks to discuss new rules that may be implemented from last week’s Group of 20 nations meeting, the National Post said.

The executives are likely to use the meeting this month to voice their opposition to greater oversight powers by the Bank of Canada, the newspaper reported today, citing unidentified financial industry lobbyists.

Building Permits Drop

Stocks also dropped after Canadian building permits declined for a fifth straight month in February, the longest streak since 1990, as commercial and government construction plans slumped.

The total value of permits issued by municipalities fell 16 percent to C$3.67 billion ($2.99 billion), the lowest since January 2002, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg anticipated a 4 percent drop, the median of 15 estimates.

EnCana dropped 0.3 percent to C$54.88 as oil lost $1.46 to $51.05 a barrel. Qatari Oil Minister Abdullah bin Hamad al- Attiyah said he doesn’t expect prices to rebound as far as $70 a barrel this year as the Organization of Petroleum Exporting Countries implements its biggest-ever supply reduction. Crude stockpiles in the U.S. are at a 15-year high.

RIM climbed C$5.46, or 7.5 percent, to C$78.26, leading technology shares in the S&P/TSX to a 6.1 percent advance, the steepest among 10 industries. The company’s online applications store, inexpensive stock price and market gains versus competitors should support the shares, Bank of America analyst Vivek Arya wrote in a research note.