Gold Rally Makes Tethers XAUT Top-Performing Digital Asset as Crypto Markets Remain Flat
Tokenized gold, such as Tethers XAUT and Paxos PAXG continued to be a favorite of crypto investors in Asia as investors seek a safe haven despite a de-escalation in trade war tensions.
On-chain data shows that Tethers XAUT was a top-10 market performer out of all digital assets. Tethers tokenized gold, the largest by market cap, is up 3.4% in the last 24 hours.
CoinGecko data shows the sector is up 4.3% in the last 24 hours, compared to the CoinDesk 20, an index of the performance of the largest digital assets, which is down 2%.
The price of gold initially moved down during the early hours of the Asia trading day, after breaching an all-time high during the end of U.S. hours. Its currently trading for $3218 in Hong Kong.
Equity markets in Asia showed mixed performance in the morning session, with Hong Kongs Hang Seng down 0.2%, Shanghais SSE up 0.12%, Taipeis TAIEX up 1.6%, and Tokyos Nikkei 225 down 3.5%.
Gold typically rallies during periods of heightened economic or geopolitical uncertainty, as investors seek safety in assets seen as stores of value amid volatility. While trade tensions have calmed, investors are concerned about the lack of predictability in policy from the White House.
Gold also benefits from an inverse relationship with interest rates: lower rates reduce the opportunity cost of holding non-yielding gold, making it more attractive.
Investors are also concerned about the surging U.S. budget deficit.
China state media is also reporting that stimulus measures are in the works for the country, with interest rate cuts and government spending to the tune of $136 billion proposed.
Other market leaders include Curve DAOs CRV, up 18% on-day after news that the U.S. plans to significantly relax rules and enforcement pertaining to Decentralized Finance (DeFi).
The post Gold Rally Makes Tethers XAUT Top-Performing Digital Asset as Crypto Markets Remain Flat first appeared on CurrencyCrypt.
Text source: CurrencyCrypt
