- Tether Gold (XAUt) surged 7% this week, outpacing Bitcoin as investors flocked to gold-backed tokens amid Trump’s renewed attacks on the Fed.
- With spot gold hitting a record $3,500, XAUt is positioning itself as the digital gold standard in times of global uncertainty.
In a week where political rhetoric shook global markets, Tether Gold (XAUt) emerged as a safe haven superstar, posting a stellar 7% gain and leaving Bitcoin and traditional assets in its wake. As the U.S. dollar slumped to a three-year low following fresh attacks from former President Donald Trump on the Federal Reserve, investors turned to gold—both physical and tokenized.
Spot gold hit a historic high of $3,500 per ounce, smashing previous records. The surge was spurred by Trump’s renewed criticism of Fed Chair Jerome Powell, which rattled investor confidence and triggered a sell-off in equities. As Wall Street dipped, gold-backed crypto assets like XAUt and PAX Gold (PAXG) surged in popularity. Together, they now boast a combined market cap of $2.18 billion.
Also read: Bitcoin vs. Gold: Binance’s CZ Says Only One Has Truly Limited Supply
XAUt has been the standout performer. While Bitcoin rose 3% over the week, XAUt soared more than twice that amount, trading at $3,461 at press time. PAXG wasn’t far behind at $3,470. Unlike speculative meme tokens, these digital assets are backed by physical gold stored in vaults, offering the tangibility and trust that jittery investors crave during volatile times.
The broader crypto market echoed this bullish sentiment. Digital asset market cap climbed 2% in the past 24 hours to reach $2.78 trillion, fueled by growing institutional interest and a flight to safety. Tether CEO Paolo Ardoino declared that XAUt is on track to become the largest tokenized gold product globally. He highlighted its accessibility via USDT’s vast network, giving millions of users exposure to gold in a digital-first format.
Meanwhile, central banks continue to stack gold reserves at a record pace, reinforcing the narrative that gold—especially tokenized versions—remains a bedrock of financial stability. With market sentiment eyeing $3,600 as the next major gold milestone, the era of digital gold may just be getting started.
