Tokenised gold experienced a significant surge over the weekend, reacting to geopolitical tensions following U.S. airstrikes in Iran. Both Tether Gold (XAUT) and Paxos Gold (PAXG) saw substantial increases in value, while leading cryptocurrencies Bitcoin and Ethereum faced notable declines.
On Saturday morning in New York, Tether Gold reached an impressive high of $5,455 before slightly retreating to around $5,332, marking a 2% increase over the previous day but remaining about 5% below its all-time peak recorded in February. Likewise, Paxos Gold surged nearly 4%, reaching $5,438, briefly touching $5,536 before settling back down.
As tensions in the Middle East escalated, many investors turned to these tokenised gold assets, which offer exposure to safe-haven commodities within the blockchain ecosystem. The trading patterns revealed a stark contrast: while both XAUT and PAXG flourished, Bitcoin fell to as low as $63,177, reflecting a prevailing year-to-date decline. Ethereum also experienced significant drops in response to the news.
Historically, major cryptocurrencies have demonstrated volatility in reaction to geopolitical unrest, but the recent interest in tokenised gold illustrates a shift where investors seek quick access to blockchain-based precious metals. Data from DefiLama highlighted a growing total value locked in both PAXG and XAUT as rising gold prices attracted more investors.
Tether, a dominant player in the stablecoin market with its widely used USDT, has emerged as a significant accumulator of gold and is now one of the world’s largest holders. In January, Tether noted that a surge in “digital-native demand for safe-haven assets” was driving the growth of its gold-backed product, XAUT.
Bitcoin’s longstanding reputation as a safe-haven asset, previously correlated with gold, has come into question since last October’s major market turmoil, which resulted in significant liquidations and billions lost across the crypto space. Despite Bitcoin and Ethereum’s struggle to regain their previous highs, gold prices have continued to reach new heights in 2026, showcasing a shift in investor sentiment towards traditional safe-haven assets amidst ongoing uncertainty.
