Canadian gold exports reach record highs
According to Statistics Canada, Canada’s exports reached an all-time high in April due to a 2.5% increase, surpassing pre-COVID-19 pandemic levels. Metal and non-metallic mineral products drove the increase, up 13.6% in April, led by a 46.0% increase in unwrought gold due to higher volumes and prices. Canadian financial institutions sending more gold assets to the US were also responsible for the rise in metal product exports, reflecting investor interest in safe haven metals amid economic uncertainty.
Despite the heightened metal product exports, it is not expected that the elevated levels will last in May or June. Reportedly, the gain in April is partially due to gold shipments sent to the US. Canada’s central bank raised its key interest rate this week by 25 basis points to 4.75%, citing high inflation, robust economic growth and a tight labor market as reasons for the decision.