As of April 24, 2025, Canadian investors are observing contrasting movements in the precious metals market, with gold prices reaching new highs while silver experiences a notable decline. These trends are influenced by global economic uncertainties and recent fluctuations in the Canadian dollar.
Gold prices in Canada have climbed to approximately $4,500 per ounce, up from $4,250 the previous week. This increase is driven by heightened investor demand amid escalating U.S.-China trade tensions, new tariff initiatives by the U.S. administration, and expectations of interest rate cuts by the Federal Reserve.
In contrast, silver prices have declined to approximately $45.20 per ounce, down from a peak of $48.47 on April 2. This represents a decrease of about 7.7 per cent over the past two weeks. Analysts attribute this decline to profit-taking by investors and adjustments in industrial demand forecasts.
The Canadian dollar has experienced notable fluctuations in 2025, affecting the domestic pricing of globally traded commodities such as gold and silver. The USD/CAD exchange rate dipped to 1.3864 on April 11 before edging up to 1.3890 by April 16. Earlier in the year, on February 3, the Canadian dollar reached its weakest level so far, with one U.S. dollar costing 1.472 CAD. These currency shifts directly impact the cost of importing and exporting precious metals, contributing to volatility in Canadian market prices.
Market Outlook
The contrasting movements in gold and silver prices highlight the complex interplay of global economic factors and currency fluctuations. While gold continues to attract investors seeking a hedge against economic instability, silver’s performance is more closely tied to industrial demand and broader market dynamics.
Investors are advised to monitor these developments closely, considering both global economic trends and domestic currency movements when making investment decisions in precious metals.