Gold-Backed Tokens Pull Back After Brief Rally as Market Turmoil Deepens
Gold-linked cryptocurrencies, including Paxos Gold (PAXG) and Tether Gold (XAUT), fell from record highs on Friday as investors scrambled for liquidity amid a global market rout triggered by U.S. President Donald Trump’s tariff announcement.
Initially acting as a haven, PAXG and XAUT surged to all-time highs of $3,191 and $3,190, respectively, outpacing spot gold’s $3,167. However, the rally reversed sharply as equities collapsed and forced liquidations spread across assets. PAXG dropped to $3,074, XAUT to $3,064, with gold itself retreating to $3,038 per ounce.
The sell-off, fueled by uncertainty around the scope of new trade measures, wiped out $2.5 trillion from U.S. markets. The S&P 500 and Nasdaq 100 each posted historic losses, and the MSCI World Index fell 4.3% on Friday after a 3.7% drop the day prior.
Despite the volatility, gold-backed tokens remain up 17% in 2025, supported by Fed rate cuts, Asian demand, and central bank buying. February alone saw 24 metric tons of net gold purchases globally, led by Poland’s 29-ton boost. China, Turkey, and Qatar also grew reserves.
