A Big Week for Canada’s Gold and Silver ETFs: What Drove the Surge
Canadian gold and silver ETFs surged last week as global safe-haven demand, tight silver supply, and Fed uncertainty lifted precious metals prices.
Why did gold rally again last week?
Gold ended last week firmly supported as investors braced for a heavy wave of delayed U.S. economic data, including the September non-farm payrolls report due this Thursday. The uncertainty around the Federal Reserve’s next move remains a defining force: markets now assign only a 46% chance of a December rate cut, down from above 60% earlier in the month.
Despite short-term softness, the broader backdrop remains unmistakably bullish. Gold is still up more than 50% this year and pacing for its strongest annual gain since the late 1970s. The drivers are consistent: persistent geopolitical tensions, fiscal risks, and another year of robust central bank buying.
In Canada, these macro forces fed directly into sharply stronger performance across gold-focused ETFs last week, particularly in producer-heavy products that tend to amplify spot price swings.
Why is silver outperforming so dramatically?
Silver held near $51 on Monday after a sharp pullback late last week, but it remains one of 2025’s standout performers. Industrial demand tied to renewables, semiconductors, and AI infrastructure continues to expand, even as supply growth remains modest. Meanwhile, silver’s designation as a U.S. “critical mineral” added fresh support, raising the likelihood of future trade measures and reinforcing strategic demand.
Globally, silver ETP holdings are up roughly 18% year-to-date, and Canada followed suit last week as silver-linked ETFs captured strong performance momentum—even with modest outflows in some products.
What does the structural silver deficit mean for investors?
The Silver Institute now expects a fifth consecutive global silver market deficit, with 2025 on track for roughly a 95Moz shortfall. Industrial demand is softening slightly, but not enough to offset a supply base that has grown only fractionally.
The result is a market still tightly balanced—and one where investors have leaned into ETP exposures as a direct way to express both safe-haven and industrial-demand views.
This supply-demand tension has been especially visible in Canada, where silver ETFs recorded some of the strongest weekly returns in the entire precious-metals category.
How did Canadian precious-metals ETFs perform last week?
- XGD – iShares S&P/TSX Global Gold Index ETF posted a strong +6.20% weekly gain, extending its massive +121.55% YTD advance as gold producers continued to outperform spot prices.
- GLDX – Global X Gold Producers Index ETF led the gold-producer segment with a +7.40% weekly jump, bringing its YTD surge to +150.33%, one of the highest in Canada’s ETF universe.
- ZGD – BMO Equal Weight Global Gold Index ETF climbed +5.77% for the week and now sits at +131.15% YTD, benefiting from broad strength across mid- and large-cap miners.
- SVR – iShares Silver Bullion ETF (CAD-Hedged) rose +6.73% WTD, continuing its strong +75.97% YTD performance as silver momentum outpaced gold.
- KILO – Purpose Gold Bullion ETF (CAD-Hedged) added +2.03% on the week, pushing further into +52.50% YTD territory amid resilient physical gold demand.
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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
