The cryptocurrencies backed by Gold as Paxos Gold (Paxg) and Tether Gold (Xaut) withdrew from the highest records on Friday in the middle of a sale of global financial markets that erased $ 2.5 billion of US shares only in one day after the president of the United States, Donald Trump, revealed his reciprocal tariffs.
The tokens, which are backed by physical gold and track their price, initially joined as investors sought refuge from the uncertainty that tariffs introduced. Gold is generally considered an investment in the shelter, but large -scale losses in capital markets often force investors to liquidate safer assets to cover margin calls and cash losses.
PaxG rose to a historical maximum of $ 3,191 with Xaut following closely to reach $ 3,190, exceeding the spot gold peak of $ 3,167. The initial increase did not last, with PaxG falling to $ 3,074 and Xaut at $ 3,064, which reflects Gold’s setback at $ 3,038 per ounce.
Tariffs on Wednesday announced spooky markets with their goals of amplitude and unclear. Investors, already nervous from a volatile global perspective, responded quickly. The S&P 500 registered one of its most steep drops from the Covid era in 2020 on Thursday, while Nasdaq 100 saw its worst loss of one day in history according to Kobeissi’s letter. The defeat extended to a second day, with the MSCI World index falling 4.3% on Friday after losing 3.7% on Thursday.
Even so, gold -backed tokens remain 17% higher since the beginning of the year. The rally has been promoted by interest rate cuts of the Federal Reserve, sustained demand from Asia and a shopping wave of the Central Bank at the beginning of the year. In February, Central Banks reported gold purchases of 24 metric tons, according to the Gold Council World Cup.
Poland led the package, added 29 tons and carries its total reserves to 480 tons, now 20% of its currency holdings. China, Türkiye, Jordan and Qatar also increased their holdings.
