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Times of uncertainty, interest rates and the value of the US dollar all play a role in gold prices

October 5, 2022, 11:00 a.m. (EDT)

Gold is often viewed as a safe haven in times of turmoil, and no time in recent history has been more tumultuous globally than the last three years.

Perhaps it is therefore not surprising that gold prices spiked at the beginning of the COVID-19 pandemic, reaching a record-high US $1,969 per ounce in August 2020 and peaked again in March 2022 (US $1,948) following the Russian invasion of Ukraine.

Gold prices stood at US $1,765 per ounce in August 2022, up 19.3% from December 2019 (US $1,479).

“While gold is indeed a safe haven, there are other factors as well,” says Tshibangu Batubenga, an economist for the Industrial Product Price Index, which tracks the price of gold and other commodities. “In general, gold prices move in opposition to bond yields, so as interest rates fall, gold tends to increase in value.”

“Another factor that can influence gold prices is the US dollar,” says Tshibangu. “Gold is generally traded in US dollars, and the appreciation or depreciation of this currency has an influence on the demand and therefore on the price.”

Canada was the fifth largest gold mining country in the world in 2020

Canada is blessed with vast gold deposits and was the fifth largest gold mining country in the world in 2020, producing 178.1 tonnes.

Canadian mineral mining companies shipped $13.7 billion worth of gold in 2021, up 3.5% from 2020 and 19.7% higher compared with prior to the pandemic in 2019.

The most productive gold mines in 2021 were found in Ontario, Quebec, British Columbia, and Nunavut.

For the latest news on gold production and prices, check out the Monthly Mineral Production Survey and the Industrial Product Price Index.

 

 

Contact information

For more information, contact the Statistical Information Service (toll-free 1-800-263-1136514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).