BANK OF CANADA GOLD RESERVES & MONETARY POLICY IN 2026

The Bank of Canada's monetary policy decisions continue to have a significant impact on gold prices when measured in Canadian Dollars. With the CAD fluctuating against the USD, Canadian gold investors face a dual dynamic: changes in the international gold price AND changes in the exchange rate.

In early 2026, the Bank of Canada maintained its interest rate at 3.00%, following a series of cuts in late 2025. Lower rates generally support higher gold prices by reducing the opportunity cost of holding a non-yielding asset. For Canadian investors, rate cuts also tend to weaken the CAD, amplifying gold's gains in CAD terms.

Key points for Canadian gold investors:

• Canada holds approximately 0 tonnes of gold reserves — the BoC sold its remaining gold in 2016

• The USD/CAD exchange rate is as important as the spot price for Canadian returns

• A weakening CAD against USD means gold in CAD rises even if USD price stays flat

• Canadian Gold Maple Leaf coins remain the domestic standard for investment bullion

• RRSP/TFSA-eligible gold products provide tax-advantaged exposure for Canadian savers