Rising Gold Prices Make Tether's XAUT the Best Performing Digital Asset While Crypto Markets Remain Stagnant
Stock markets show mixed results on trade war de-escalation.
Sam Reynolds | Edited by Parikshit Mishra Updated April 11, 2025, 3:15 PM Published April 11, 2025, 6:18 AM
What you should know:
- Tokenized gold continues to be in demand among crypto investors in Asia, with Tether's XAUT performing well in the market.
- Despite the easing of trade tensions, investors are turning to gold amid concerns over unpredictable US policy and a growing budget deficit.
Tokenized gold such as Tether's XAUT and Paxos' PAXG continue to be the choice of crypto investors in Asia as they seek a safe haven despite easing trade war tensions.
On-chain data shows that Tether's XAUT has made it into the top 10 market performance of all digital assets. Tether's tokenized gold, which has the largest market cap, has increased by 3.4% in the last 24 hours.
The sector has gained 4.3% over the past 24 hours, while the CoinDesk 20 index, which measures the performance of the largest digital assets, has fallen 2%, according to CoinGecko.
Gold prices initially fell in the early Asian trading hours after hitting an all-time high in late US trading. They are currently trading at $3,218 in Hong Kong.
Asian stock markets were mixed in the morning session, with Hong Kong's Hang Seng down 0.2%, Shanghai's SSE up 0.12%, Taipei's TAIEX up 1.6%, and Tokyo's Nikkei 225 down 3.5%.
Gold tends to trade higher during periods of economic or geopolitical uncertainty as investors seek protection in assets seen as stores of value in volatile times. While trade tensions have eased, investors are concerned about the unpredictability of White House policy.
Gold also benefits from an inverse relationship with interest rates: lower rates reduce the opportunity cost of holding non-income-producing gold, making it more attractive.
Investors are also expressing concern about the growing US budget deficit.
By mid-Fiscal Year 2025, the U.S. budget deficit had increased by $1.3 trillion. That brings us to an annual rate of $2.6 trillion. That rounds up to a whopping 9% of GDP. The ratio is shan.
— Jeffrey Gundlach (@TruthGundlach) April 10, 2025
Chinese state media also reported that the country is developing economic stimulus measures that include lower interest rates and a $136 billion increase in government spending.
Other market leaders include Curve DAO's CRV, which gained 18% in a day following news that the US plans to significantly relax regulations and compliance measures surrounding decentralized finance (DeFi).
