Gold Priced in Canadian Dollars: Why the Exchange Rate Matters to Producers

Gold rose 13.2% in U.S. dollars over the past year and 15.4% in Canadian dollars. A worked example of how USD/CAD moves Canadian mine margins.

Key takeaways

From September 23, 2025 to September 23, 2026, gold rose 13.2% in US dollars and 15.4% in Canadian dollars, to C$6,039.36 an ounce.
At US$4,284 gold, each one-cent rise in USD/CAD adds about C$43 per ounce of revenue for a Canadian producer.
Agnico Eagle’s 2026 guidance assumed 1.36 C$/US$, and it hedged about 60% of its remaining 2026 Canadian dollar exposure.

Gold trades in U.S. dollars, but most Canadian mines pay wages, power and contractors in Canadian dollars. When the loonie weakens, a Canadian producer’s revenue per ounce rises in Canadian dollars while much of its cost base does not. Over the past year that effect added to gold’s own gain.

Gold in both currencies, a year apart

Using the LBMA Gold Price PM and the Bank of Canada’s daily USD/CAD rate for the same day:

Date	Gold (US$/oz)	USD/CAD	Gold (C$/oz)
September 23, 2025	3,783.80	1.3832	5,233.75
September 23, 2026	4,284.45	1.4096	6,039.36
Change	+13.2%	+1.9%	+15.4%

The U.S. dollar strengthened against the Canadian dollar over the year. That turned a 13.2% gold gain in U.S. dollars into a 15.4% gain in Canadian dollars. The Bank of Canada’s rate moved further to 1.4136 on September 24, 2026.

The same effect shows up year to date. On January 2, 2026, the LBMA PM price was US$4,352.95 and USD/CAD was 1.3737, or C$5,979.65 an ounce. By September 23, gold was down 1.6% in U.S. dollars from that level, but up 1.0% in Canadian dollars. For the second quarter, the LBMA PM price averaged about US$4,506 across 61 fixes, close to Agnico Eagle’s realized price of US$4,483.

Why the cost side matters

Producers usually report costs in U.S. dollars, the currency gold is sold in. All-in sustaining cost (AISC) is the standard measure: cash costs plus sustaining capital, corporate overhead and other ongoing spending, per ounce sold.

For a mine in Canada, much of that cost is incurred in Canadian dollars and converted to U.S. dollars for reporting. So when the Canadian dollar weakens, reported U.S. dollar costs tend to fall even if nothing at the mine changed.

Agnico Eagle, which operates several mines in Canada, shows how this appears in disclosure. Its 2026 guidance assumed an exchange rate of 1.36 C$/US$. In its July 29, 2026 second-quarter release, the company said it had hedged approximately 60% of its estimated remaining Canadian dollar exposure for 2026. Its second-quarter AISC was US$1,459 per ounce, against an average realized gold price of US$4,483 per ounce.

The math: one ounce, two exchange rates

This worked example uses Agnico Eagle’s reported Q2 2026 figures as round inputs, then applies a simplifying assumption: that all costs are in Canadian dollars. Real mines have a mix of currencies and hedges, so this is an illustration of the mechanism, not a model of any company.

Step 1. Q2 2026 in Canadian dollars. The Bank of Canada daily USD/CAD rate averaged 1.3843 from April 1 to June 30, 2026.

Realized price: US$4,483 x 1.3843 = C$6,206
AISC: US$1,459 x 1.3843 = C$2,020
Margin: C$4,186 per ounce (US$3,024)

Step 2. Hold that C$2,020 cost fixed and move to September 23 prices. Gold at US$4,284.45 and USD/CAD at 1.4096.

Price: US$4,284.45 x 1.4096 = C$6,039
Margin: C$6,039 minus C$2,020 = C$4,020 per ounce
Same cost restated in U.S. dollars: C$2,020 / 1.4096 = US$1,433

Gold fell about US$199 per ounce between the Q2 realized price and the September 23 fix. The Canadian dollar margin fell by about C$166, less than the U.S. dollar drop converted at either rate, because the weaker loonie offset part of the decline. The same fixed Canadian dollar cost would be reported as US$26 lower per ounce.

Step 3. Isolate the currency effect. Hold gold at the Q2 realized US$4,483 and change only the exchange rate from 1.3843 to 1.4096. Revenue rises by US$4,483 x 0.0253 = about C$113 per ounce, with no change in Canadian dollar costs.

A rule of thumb follows: at US$4,284 gold, every one-cent rise in USD/CAD adds about C$43 per ounce of revenue.

Reading a producer’s disclosure

Three items in a quarterly report tell you how exposed a Canadian producer is to the loonie. First, the exchange rate assumed in cost guidance, such as Agnico Eagle’s 1.36. Second, the share of expected Canadian dollar spending that is hedged, and at what rates. Third, any stated sensitivity, often expressed as the change in cost per ounce for a given move in the currency. When the actual rate sits well away from the guidance assumption, reported U.S. dollar costs will drift from guidance for reasons unrelated to mine performance.

Sensitivity table

Holding gold at the September 23 LBMA PM price of US$4,284.45 and the illustrative cost at C$2,020 per ounce, here is how the Canadian dollar margin changes with the exchange rate alone:

USD/CAD	Gold (C$/oz)	Illustrative margin (C$/oz)
1.35	5,784	3,764
1.38	5,913	3,893
1.41	6,041	4,021
1.44	6,170	4,150

A nine-cent swing in the exchange rate, from 1.35 to 1.44, moves the illustrative margin by about C$386 an ounce, or roughly 10%. These rows are arithmetic, not forecasts of either gold or the currency.

What reduces the effect

Currency hedges. Hedging, like Agnico Eagle’s 60% cover on remaining 2026 exposure, locks in a rate and gives up part of the gain when the loonie weakens.
U.S. dollar costs. Diesel, some equipment and many consumables are priced in U.S. dollars, so not every cost line benefits.
Royalties and taxes. These scale with revenue and take a share of any currency gain.
Mines outside Canada. Canadian-listed companies with mines in other countries face those countries’ currencies instead.

What to watch

The Bank of Canada’s daily USD/CAD rate, published each business day.
The LBMA Gold Price, set twice daily in U.S. dollars.
Third-quarter results from Canadian producers, typically released in late October and early November, including the exchange rates used and hedge positions.
2027 guidance, usually published early in the new year, which states each company’s assumed C$/US$ rate.
The Bank of Canada’s October 28, 2026 rate decision, one of several drivers of the exchange rate.

Sources

Frequently asked questions

Why does the Canadian dollar matter to gold producers?

Gold trades in US dollars, but most Canadian mines pay wages, power and contractors in Canadian dollars. When the loonie weakens, a Canadian producer’s revenue per ounce rises in Canadian dollars while much of its cost base does not. Reported US dollar costs also tend to fall, even if nothing at the mine changed.

How much did gold rise in Canadian dollars over the past year?

Using the LBMA Gold Price PM and the Bank of Canada’s daily rate, gold rose from US$3,783.80 to US$4,284.45 between September 23, 2025 and September 23, 2026, a 13.2% gain. Because USD/CAD rose 1.9% to 1.4096, the Canadian dollar price rose 15.4%, from C$5,233.75 to C$6,039.36 an ounce.

What reduces a gold miner’s benefit from a weaker Canadian dollar?

Several things limit the effect. Currency hedges lock in a rate and give up part of the gain. Diesel, some equipment and many consumables are priced in US dollars. Royalties and taxes scale with revenue and take a share of any currency gain. Canadian-listed companies with mines in other countries face those countries’ currencies instead.