06:12 AM EST, 01/09/2026 (MT Newswires) -- Canada's trade balance deteriorated mildly to a small deficit of $600 million in October following a small surplus in the previous month, said Bank of Montreal (BMO).

Surprisingly, the deterioration wasn't worse, noted the bank after the release on Thursday of international merchandise trade data. Indeed, exports were expected to step back from lofty levels following a September surge.

They would have, if not for the "pesky category" of precious metals, stated BMO.

Exports in that category have been climbing steadily alongside rising prices. As of October, precious metals (unwrought plus alloys) made up roughly 13% of Canadian exports.

For the first time on record, or 1997, that's more than exports of oil or autos, pointed out the bank. Those two traditional heavyweights have, of course, been under pressure from lower prices and higher trade tensions, respectively.

While Canada's trade flows will continue to face headwinds amid geopolitical uncertainty, gold will remain a stalwart as long as prices hold up, added BMO.