Gold prices surge in Canada, boosting stock market

April 2025 is proving to be a golden month for Canadian investors, with the price of the precious metal experiencing a significant surge. This jump in gold prices has not only grabbed the attention of people but has also had a big effect on the overall Canadian stock market, even more so than the Bank of Canada’s decision to keep interest rates unchanged.

Canada’s central bank has maintained its key policy rate at 2.75%, following seven consecutive cuts.

Right now, on April 22, here’s what you’d pay per gram:
For the purest gold (24 Karat): $154.75

For slightly less pure gold (22 Karat): $146.50

For gold mixed with other metals (18 Karat): $119.90Since the start of April, the price of both the purest and slightly less pure gold has gone up by about 5%. Even though there were some days which saw the gold prices going down, they bounced back and have been rising. This shows that there’s a lot of interest in buying gold right now.This rise in gold prices has also been good for companies that mine gold in Canada. On April 16, their stocks did better than any other group on the Toronto Stock Exchange. This also helped the main stock market index to go up a little bit, even though the Bank of Canada decided not to change interest rates.

Experts say that people often buy gold when they’re worried about things like rising prices (inflation) or instability in the world. Also, because many central banks around the world are buying more gold, it makes gold seem like a safer and more stable investment, which can push its price higher.

The Bank of Canada has also warned the US tariff war unleashed by President Donald Trump could lead to a rise in inflation. There are chances, although it is a worst-case scenario, that the country may also plunge into recession.

So, gold seems to be a safe bet for many investors who are flocking to buy the yellow metal.