Gold-backed cryptocurrencies surge amid global trade uncertainty
Gold-backed cryptocurrencies have surged in value amid the global trade war triggered by tariffs announced by U.S. President Donald Trump on April 2.
Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22, with Tether Gold hitting $3,529 and Paxos Gold recording a peak of $3,520, according to data from CoinMarketCap.
Two other gold-backed cryptocurrencies — Quorium (QGOLD) and Kinesis Gold (KAU) — recorded increases of 8.5% and 7.6%, respectively, in the last 30 days. All four tokens have gained 40% or more in the last 12 months, according to data from CoinGecko.
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According to a report from Tether, the growing demand for XAUT is driven by macroeconomic factors such as escalating global economic uncertainty, geopolitical conflicts, and the search for inflation-resistant assets.
Since the renewal of the trade war by President Trump, the price of gold has increased significantly. On April 2, Trump's "Liberation Day," when the tariffs were announced, the price of an ounce of gold was $3,115.
At the time of writing this text, on April 28, the price of an ounce is $3,335, representing a jump of 7% in less than 30 days.
Gold, often seen as a hedge against inflation, tends to attract investors in times of economic uncertainty. Similarly, Bitcoin (BTC), often dubbed "digital gold," rose 14% in the same period.
Source: CoinMarketCap.
