Gold and other precious metals have become one of the strongest parts of the stock market this year. These metals have helped the S&P/TSX Composite Index, Canada’s main stock market index, do better than the U.S.-based S&P 500 index. Experts say regular investors still have a chance to benefit from this gold rally.
John Zechner, chairman of J. Zechner Associates, said:
“Gold has been the biggest winner in Canada. It now makes up about 12% of our stock market index, and that’s why the TSX has done so well this year.”
As of this week, the TSX index is up 11%, while the S&P 500 is up around 8%, according to stock market data from LSEG.
At the same time, gold prices have jumped 30% this year. The August gold contract is now trading close to $3,400 per ounce, a level not seen before.
Dennis da Silva, a senior portfolio manager at Middlefield, also agrees that gold has played the biggest role in Canada’s stock market success.
He shared that the S&P/TSX Global Gold Index, which follows gold-related stocks, is up 40% this year. That means around 30% of TSX’s gains come from companies in gold, silver, and precious metals.
In comparison, U.S. stock markets like the S&P 500 have mainly been rising due to giant technology companies. But this year, their power seems to be slowing down.
Chris McHaney from Global X Investments Canada explained that U.S. tech stocks such as Tesla, Alphabet (Google), Amazon, and Meta (Facebook) have had mixed results this year.
Here’s how some of the famous "Magnificent Seven" tech stocks have performed so far in 2025:
Because some of these tech giants are not doing as well as before, it has helped Canada’s gold-heavy TSX index rise higher in comparison.
“It’s not that tech is failing, but gold is just doing better, and Canada has more of it,” McHaney said.
There are many reasons why gold prices are rising, and experts shared a few key ones:
Safe Haven Buying
When the world feels uncertain, investors turn to gold. It is seen as a safe place to put money during rough times. In early 2025, global trade fights and economic worries caused many people to buy gold.
Trade Disputes and Tariffs
In March and April 2025, U.S. President Donald Trump announced new tariffs (extra taxes on trade). This confused investors and made them worry about the world economy. As a result, people started buying gold to protect their money.
Inflation and Government Debt
Around the world, countries are dealing with high government debt and rising inflation. These factors also make gold more attractive, as it holds value better than money during tough times.
Central Banks Buying Gold
Many central banks (including those in Asia and the Middle East) have started buying gold to hold as foreign currency reserves.
After the U.S. and Europe froze Russia’s assets due to the war in Ukraine, countries began to worry that their money could be blocked too. So, they started buying more gold to protect their national wealth.
“It was a wake-up call. Countries saw that their assets might not be safe anymore,” said da Silva.
Some regular investors might feel they’ve missed the chance to invest in gold now that prices are so high. But experts say there is still time.
Chris McHaney believes the rise in gold may slow down, but even if prices stay where they are, companies in the gold sector could still do very well.
“It’s not just about gold going higher. If gold just holds its ground, gold companies can still make strong profits,” he explained.
This year, gold has taken the lead in the stock market — especially in Canada. While U.S. markets continue to depend on big tech companies, the TSX has found strength in metals. With the world going through uncertain times, more people are turning to gold and precious metals to protect their money.
If you’re an investor, it’s not too late to learn more about gold and how it can fit into your plans.
Gold isn’t just shining—it’s leading.
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