Gold Price Reaches CAD$5,684/oz Following Bank of Canada 25 bps Rate Hike

The Bank of Canada lifted its overnight rate to 2.50 percent, the bank rate to 2.75 percent and the deposit rate to 2.45 percent. It highlighted resilient global activity despite higher energy prices and slightly raised its 2026 global GDP forecast to 3.1 percent. The Canadian dollar traded in a narrow range with USD/CAD at 1.4040, while gold in CAD terms slipped 0.36 percent to 5,684.40 per ounce. Canadian GDP is projected to expand 1 percent in 2026 and 2 percent in both 2027 and 2028. CPI inflation is seen averaging 3 percent next year before easing to 2 percent by mid-2028, with the central bank indicating a cautious stance on further rate moves.