Tokenized gold, including offerings like XAUT from Tether and PAXG from Paxos, remains highly sought after by crypto investors across Asia, particularly as they look for stability amidst easing trade tensions.
Recent on-chain analytics indicate that Tether’s XAUT emerged as one of the top ten performing assets in the digital market. This tokenized gold, commanding the highest market capitalization, has appreciated by 3.4% over the past 24 hours.
Data from a leading crypto analytics platform reveals that the tokenized gold sector itself has surged by 4.3% in the last 24 hours, while an index tracking the performance of the 20 largest digital assets has seen a decline of 2%.
During the early hours of trading in Asia, the price of gold experienced a decline after reaching a record high toward the end of U.S. trading hours. Currently, it is valued at $3,218 in Hong Kong.
Asian equity markets demonstrated a mixed performance today, with the Hang Seng in Hong Kong down by 0.2%, the Shanghai Composite up by 0.12%, Taipei’s TAIEX increasing by 1.6%, and Japan’s Nikkei 225 falling by 3.5%.
Historically, gold tends to spike in value during times of economic or geopolitical instability, as investors flock to assets perceived as safe havens amid the tumult. Although trade disputes appear to have lessened, uncertainty regarding policy direction from the U.S. government remains a concern for many investors.
Additionally, gold’s appeal is enhanced by its negative correlation with interest rates: lower rates diminish the opportunity cost of holding non-yielding gold, elevating its attractiveness.
Investor anxiety about the escalating U.S. budget deficit also looms large.
"Halfway through fiscal year 2025, the U.S. budget deficit has ballooned by $1.3 trillion, bringing us to a staggering annual rate of $2.6 trillion—approaching 9% of GDP," noted a prominent financial analyst recently.
It is also being reported that China is formulating stimulus strategies, possibly involving interest rate reductions and government spending initiatives estimated at $136 billion.
Other notable market movements include Curve DAO’s CRV, which has surged 18% in a single day following news that the U.S. government intends to significantly ease regulations regarding decentralized finance (DeFi).