Tokenized Gold Outperforms as Asian Investors Seek Stability Despite Trade Calm
While equity markets across Asia delivered mixed signals Thursday morning, crypto investors remained focused on safety, pouring into gold-backed digital assets even as trade tensions between the U.S. and China showed signs of easing.
Tether’s XAUT and Paxos Gold (PAXG), two of the leading tokenized gold products, continued to see strong demand—particularly among investors in Asia. Tether’s XAUT surged 3.4% in the past 24 hours, climbing into the top 10 digital asset performers, according to on-chain data.
The broader tokenized gold sector posted a 4.3% gain, sharply outpacing the CoinDesk 20 Index, which fell 2% during the same period.
Spot gold prices experienced some volatility, briefly pulling back during the early Asian session after setting a new all-time high in late U.S. trading hours. As of mid-morning in Hong Kong, gold was trading at $3,218 per ounce.
Asian equity indexes reflected the market’s uncertainty. Hong Kong’s Hang Seng dipped 0.2%, Shanghai’s SSE edged up 0.12%, Taipei’s TAIEX gained 1.6%, while Tokyo’s Nikkei 225 slid 3.5%.
Gold’s strength continues to be driven by its traditional role as a safe-haven asset in times of geopolitical and economic uncertainty. Despite the recent cooling of tariff rhetoric, investor anxiety remains elevated due to unpredictable U.S. policy moves.
Low interest rates have also bolstered gold’s appeal. With lower yields reducing the opportunity cost of holding non-yielding assets, gold—both physical and digital—is seeing increased traction.
Adding to the backdrop is growing concern over U.S. fiscal health. “Halfway through fiscal year 2025, the U.S. budget deficit has grown by $1.3 trillion, now running at an annualized $2.6 trillion—or about 9% of GDP,” noted DoubleLine CEO Jeffrey Gundlach in a post on X.
In China, state media reports indicate that a fresh wave of stimulus is on the table, including interest rate cuts and a proposed $136 billion in new government spending.
Elsewhere in the crypto market, Curve DAO’s CRV token spiked 18% following reports that the U.S. government plans to ease regulatory scrutiny on decentralized finance (DeFi) platforms—a move that could reshape the regulatory landscape for the sector.
