(Updated at 1010 ET)
* TSX rises 0.3%
* Materials lead sectoral gains
* U.S., Canada inflation data due Friday
May 27 (Reuters) - Canada's main stock index rose on Monday, tracking energy and materials shares as commodity prices gained, while investors remained cautious ahead of this week's inflation data for clues on the timeline of interest rate cuts.
At 10:10 a.m. ET (14:10 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 56.85 points, or 0.25%, at 22,377.72.
The energy sector added 0.2%, as crude prices perked up by nearly 1%.
The materials sector, which includes precious and base metals miners and fertilizer companies, rose 1.1%, leading sectoral gains on increased gold prices.
"We expect gold prices to stay volatile, and price setbacks to be shallow, targeting gold prices to test new record highs later this year," UBS analyst Giovanni Staunovo said.
Spot silver also advanced over 3%.
The U.S. market is closed for a local holiday, likely limiting trading.
On the data front, investors braced for Canada's producer prices data for the month of April, due Tuesday, along with the country's first-quarter GDP figures, scheduled for Friday.
The reading remains crucial ahead of Bank of Canada's June 5 monetary policy meeting, as probability of the central bank initiating an interest rate cut improved to 61%.
U.S. inflation data, also due on Friday, could help traders assess the timing and number of possible rate cuts by the Federal Reserve this year.
Meanwhile, Canadian wholesale trade most likely rose 2.8% in April from March, largely driven by higher sales in the motor vehicle and motor vehicle parts and accessories subsector, Statistics Canada said in a flash estimate.
(Reporting by Khushi Singh; Editing by Sriraj Kalluvila)
