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Falling Oil, Gold Prices Hit Canadian Economy Hard

Posted November 11, 2014

Under Economic Issues, International Trade Issues

(Business in Vancouver)

There’s no way to sugarcoat it: tanking oil and gold prices – two key commodities for the Canadian economy – are bad news times two, according to analysts.

Crude oil prices are at a three-year low, gold at a 4.5-year low (but for very different reasons). The resource-heavy Toronto stock market and TSX Venture exchanges are being pulled down as a result, and the Canadian dollar last week fell below US$0.88. [...]

That might be good for consumers, who will pay less for gas at the pumps, but low commodity prices are generally bad for a resource-dependent economy, analysts say, although a low Canadian dollar could help offset those low prices for exporters. Read more here.

Related: C$ Weakens with Oil Price as Greenback Rally Restarts (Reuters)