Tether Gold (XAUt) surges 40% as central banks and institutions boost gold demand amid inflation, geopolitical risks

Tether Gold (XAUt) has emerged as a prominent digital asset amid escalating global economic uncertainty, reflecting heightened institutional and central bank demand for gold. Backed by 7.66 tons of physical bullion and supported by a market capitalization exceeding $800 million, XAUt mirrors record-high gold prices, which currently hover just below $3,400 per troy ounce [1]. The token, launched in January 2020, combines the intrinsic value of gold with blockchain advantages such as portability, divisibility, and redeemability, offering investors a liquid and tradable alternative to physical bullion [2].

The surge in XAUt’s value is closely tied to broader trends in gold markets. Central banks have amassed over 1,000 metric tons of bullion in 2024, marking the third consecutive year of significant stockpiling, as geopolitical risks and currency instability persist [3]. Christopher Gannatti, global head of research at WisdomTree, noted that central banks have reversed decades of gold selling, now aggressively rebuilding reserves amid "rising geopolitical risk and currency weaponization" [4]. Institutional investors have also poured $38 billion into gold ETFs in the first half of 2025, the largest inflow in five years, further solidifying gold’s role as a safe-haven asset [5].

Tether Gold’s performance aligns with physical gold’s trajectory, with its price surging approximately 40% over the past 12 months, according to COINOTAG data [6]. This correlation underscores XAUt’s reliability as a digital proxy for gold, enabling investors to gain exposure to bullion without logistical challenges like storage or transportation. The token is available on major crypto exchanges, including Bybit, Bitfinex, BingX, KuCoin, and Thailand’s Maxbit, with recent expansion to The Open Network (TON) via Tether’s liquidity network [7].

Economic factors such as inflation and trade tensions have further fueled demand for gold and XAUt. Economist Peter Schiff highlighted that U.S. inflationary pressures, exacerbated by tariffs and rising production costs, are expected to persist through the second half of 2025. This outlook has prompted cautious monetary policies, with analysts like Preston Caldwell of Morningstar delaying expectations for interest rate cuts [8]. Gold’s historical role as a hedge against inflation and currency devaluation has reinforced its appeal, particularly as global markets navigate macroeconomic turbulence linked to trade wars and recession risks [9].

XAUt’s growth reflects a broader shift in investment strategies, where blockchain technology enhances traditional assets’ accessibility and efficiency. Unlike physical bullion, XAUt tokens can be easily traded, subdivided, and redeemed, catering to institutional investors seeking liquidity without compromising gold’s store-of-value properties [10]. This dynamic positions XAUt as a bridge between legacy commodities and digital finance, aligning with the growing appetite for tokenized assets in a volatile economic climate.

As geopolitical tensions and inflationary pressures persist, XAUt’s trajectory mirrors the resilience of gold as a long-term wealth preserver. With central banks and institutions prioritizing diversification and security, the token’s market capitalization is poised to remain a barometer of global economic sentiment [11].

Source: [1] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [2] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [3] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [4] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [5] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [6] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [7] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [8] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [9] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [10] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/], [11] [Tether Gold (XAUt) Growth Reflects Rising Institutional Demand Amid Economic Uncertainty] [https://en.coinotag.com/tether-gold-xaut-growth-reflects-rising-institutional-demand-amid-economic-uncertainty/].