Canadian investors are tracking a shifting precious metals landscape this May, with gold pulling back from recent record highs and silver continuing its gradual decline. While global uncertainty and market volatility remain, recent developments have moderated some of the bullish momentum behind both metals.
As of May 15, gold is trading at approximately $4,428 per ounce in Canadian funds, marking a decline from around $4,603 a week earlier. The dip follows a dramatic run-up in prices that saw gold peak at over US$3,500 per ounce in April, driven by fears of geopolitical instability, high inflation, and widespread debt concerns.
Recent signs of stability, however, have cooled that momentum. The U.S. and China announced a temporary easing of tariffs earlier this month, easing one of the key flashpoints in global trade tensions. Additionally, strong U.S. labour market data has restored investor confidence in the broader economy, reducing demand for gold as a safe-haven asset.
Expectations for interest rate cuts by the U.S. Federal Reserve have also been tempered, weakening a key support for gold. Despite this, some analysts, including well-known investor Jeff Gundlach, continue to forecast longer-term gains for the metal, with projections of a US$4,000 price still in play should global market volatility return.
Silver prices have also edged lower, falling to about $44.49 per ounce in Canadian dollars, down slightly from $44.93 the previous week and well off the high of $48.47 recorded on April 2. Analysts point to profit-taking following silver’s strong first-quarter gains and a softening industrial outlook – particularly in the electronics and renewable energy sectors – as key contributors to the retreat.
Even so, the long-term fundamentals for silver remain solid, with many forecasters expecting prices to rebound in the second half of 2025. Growing demand for silver in industrial and green technology applications, coupled with limited global supply, may support a renewed uptrend. Some forecasts see silver reaching US$40 to US$50 per ounce by year’s end.
Currency fluctuations are also playing a role in Canadian bullion pricing. The Canadian dollar has seen relative stability in recent weeks, with the USD/CAD exchange rate sitting at around 1.3778 – down slightly from 1.3864 in mid-April. Since precious metals are priced globally in U.S. dollars, changes in the exchange rate can significantly impact Canadian-dollar valuations.
Gold and silver continue to reflect their differing roles in the global economy. Gold remains a go-to for risk-averse investors during uncertain times, while silver – though also a store of value – is more closely tied to industrial trends and economic performance.