Gold price hits CAD $6,087/oz after Bank of Canada holds rates, says ‘US tariffs and threats of further action pose risks’
The Bank of Canada held interest rates steady at 2.25% while citing risks from US trade tariffs and Middle East conflicts. Gold prices reached record highs in Canadian dollar terms following the announcement.
Why it matters
Monetary policy decisions and trade tensions directly impact currency valuation and commodity market volatility in North America.
(Kitco News) - The Bank of Canada (BoC) maintained its key overnight rate at 2.25% on Wednesday, as expected, with the bank rate staying at 2.50% and the deposit rate remaining at 2.20%.
The BoC said the ongoing conflict in the Middle East is keeping energy prices high. “As well, new US tariffs and Canadian counter-measures have been announced following the breakdown of trade talks between Canada and the United States,” they said. “Both situations remain fluid.”
The Canadian dollar fell to session lows in the minutes after the announcement, with USD/CAD last trading at 1.3869 per U.S. dollar, down 0.19% on the session.
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