A volatile macroeconomic environment has led to increased investments in gold, with bullion prices reaching record highs. Tether Gold (XAUt), a gold-backed digital token, now has reserves backing over 259,000 tokens, translating to a market cap exceeding $800 million. Its price tracks the physical gold market, which is near $3,400 per troy ounce. Institutional investors and central banks have shown significant interest, with global central banks acquiring over 1,000 metric tons of gold in 2024 for the third consecutive year. Despite the emergence of digital assets, physical gold remains a preferred safe-haven investment during uncertain times, as highlighted by the recent surge in inflows into gold ETFs amounting to $38 billion during the first half of 2025. This growth is driven by geopolitical risks and persistent inflation concerns, prompting a cautious monetary policy outlook from economists. Tether Gold offers the benefits of portability and digital accessibility, further blurring the lines between traditional bullion investments and crypto assets.

Source đź”—