Gold powered through $4,100 an ounce and set a fresh intraday high near $4,179 on Tuesday, extending a blistering run that has made the metal one of 2025’s standout performers.
The latest leg higher has coincided with softer growth signals, persistent geopolitical jitters, and rising bets that central banks will have to keep easing financial conditions.
The surge follows weeks in which gold smashes records while silver’s rally has narrowed the gap.
In Canadian terms, the move has been even more pronounced. A weaker loonie has pushed the local spot price to new highs, magnifying the appeal of bullion as a portfolio hedge.
That currency effect matters for retail buyers and wealth managers who transact in Canadian dollars and mark performance in Canadian dollar terms.
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Canada’s flows tilt to bullion
Research firm ETFGI reported record assets for the Canadian ETF industry in September and listed the iShares Gold Bullion ETF (CGL) among the month’s biggest asset gatherers by net new money.
That tally underscores how domestic investors are leaning into physical exposure as the global backdrop turns choppy.
The broader pattern is consistent with the past quarter, when gold-backed funds drew steady contributions even as equity allocations held up.
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On the equity side, Toronto’s senior producers are benefiting from the spike in realized prices and expanding margins.
Agnico Eagle (AEM) and Barrick (ABX, GOLD) sit near the top of watchlists as traders rotate toward cash generative miners with low-cost assets and cleaner balance sheets.
The bid for miners tracks a familiar playbook during bullion-led rallies, though it remains sensitive to day-to-day swings in Treasury yields and the U.S. dollar.
Inflation is closer to target but sticky in key service buckets, and the Bank of Canada is committed to a two percent objective.
That stance keeps attention on incoming data and rate-path expectations. Any perception that real yields have peaked would tend to support bullion prices and, by extension, Canadian holders of gold-linked funds.
Market structure also helps explain the intensity of the bid. Physical-backed products have become a more convenient on-ramp than coins and bars for many advisors, and sponsors have leaned into that demand.
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In September, Sprott launched an active metals and miners fund, extending a domestic lineup built for commodity cycles.
While active strategies can widen dispersion across mining shares, the underlying driver remains bullion’s trajectory and the cost of capital.
Earlier this month, the TSX stalls near a record captured how headline indexes can flatten even as pockets of the market, including materials, accelerate.
If gold holds above the $4,000 handle, Canadian miners could continue outpacing broader benchmarks, though bouts of volatility are likely as positioning grows crowded.
The mechanical boost from a softer Canadian dollar and record bullion prices has pushed gold to the center of domestic flows.
If turbulence persists, that haven status will only become more pronounced.
