Gold Price Hits All-Time Highs in CAD
Ed Note: We are proud to unveil our new mining page, an entire space dedicated to up-to-the-minute news, with exclusive industry interviews and all the relevant information you need, rounded in up in one spot. Who is merging? Who is Buying? Who is Digging? We got you covered!
(Kitco News) - While gold has hit a fresh six-year high against the U.S. dollar, it is making even further gains another major Group of Seven currency.
Gold prices traded at all-time highs in Canadian dollar terms, hitting C$1,910.40 per ounce on Friday morning.
Nicky Shiels, commodity strategist at Scotiabank, said these highs are just the latest event in an emerging theme of currency tensions.
“Gold’s price in every major currency seems to be at record highs, and that is a big statement indicator that we are in the middle of some sort of currency war,” she said.
The rally came after investors jumped into gold due to a rise in global uncertainty. Renewed fear sentiment in financial markets were triggered after U.S. President Donald Trump’s announced a 10% tariff to be implemented on the remaining $300 billion of Chinese imports. December Comex gold futures last traded at $1,452.6, trading up 1.41% on the day.
“There’s definitely a lot of political backlash coming into the United States around the value of fiat currencies,” Shiels said. “The fact that gold is rallying against most G10 fiats, and the dollar, is indicative of this new regime that we’re in.”
Richard Baker, author of the Eureka Miner, also noted that there is a common theme that can be seen throughout global currencies.
Baker said that although the Canadian dollar is being influenced by other factors, such as the currency’s sensitivity to commodity prices, the trend still shows that global currencies are weakening “due to divergence in central bank policies and trade tensions.”