Publication date: April 2, 2025

In our previous article on Tether Gold (XAUT), published on October 4, 2024, we pointed out the uniqueness of this stablecoin: each XAUT token represents one troy ounce (about 31.1 grams) of physical gold stored in Swiss vaults. Thus, XAUT combines the reliability of bullion with the flexibility of blockchain technology. At the time, we saw investors resorting to XAUT as a hedge against market volatility, inflation, and geopolitical uncertainty.

But where does Tether Gold stand now - amid new macroeconomic tensions, rising gold prices, and an ever-changing crypto market?

image_here

2025: Gold on the rise, XAUT stable and in demand

Since early 2025, gold prices have risen by more than 20%, currently reaching $3,178 per ounce. This rise is mainly driven by geopolitical tensions and global uncertainties. In times of turmoil, investors traditionally seek safety, and gold remains a favorite refuge in this regard. The precious metal is known as a stable store of value, especially when confidence in markets or currencies wanes.

This gold rally has also given Tether Gold new momentum. Unlike other crypto currencies that are often subject to large price fluctuations, XAUT has remained stable in value but has increased sharply in popularity. More and more investors are choosing XAUT as an alternative to physical gold or as a haven within their digital portfolios.

Why do investors choose XAUT?

If you look at the price of gold over a longer period, you will see an impressive increase. Twenty years ago, you could buy a kilo of gold for around €11,000; today, that price is over €90,000. In recent months, moreover, gold has experienced a veritable rally, breaking record after record. This advance underlines the growing confidence in gold as a haven in times of economic and geopolitical uncertainty.

Below, we explain some of the key reasons why more and more people are choosing gold and what explains its recent rise in value:

1. Full gold coverage: Each XAUT token is fully backed by physical gold and redeemable. This inspires confidence, especially as transparency within the crypto market becomes increasingly important.
   
   

2. Low transaction costs and quick transfer: Unlike physical gold, XAUT is quick and cost-effective to trade via the blockchain, with no logistics or storage costs.
   
   

3. Stable value, no crypto-volatility: XAUT is not a speculative currency but a digital representation of gold. As a result, it offers stability in an otherwise volatile crypto market.
   
   

4. Growing adoption within DeFi and on exchanges: The token is now widely supported by platforms such as Kraken, Bitfinex, and Uniswap and is increasingly used within DeFi applications.

Thanks to this combination of reliability, ease of use, and integration within the digital economy, XAUT's appeal is growing rapidly. For investors looking for both security and flexibility, Tether Gold represents a modern form of the ancient precious metal, gold, in blockchain form.

Price development: less spectacular, but that is its strength

Unlike projects such as Sui, Mantra, or Solan, whose prices can fluctuate by tens of percent each week, XAUT's value is closely linked to the price of gold. This stability is not a weakness but rather the project's strength. While many altcoins underwent sharp corrections in March 2025, XAUT remained remarkably stable and even made gains thanks to the increasing demand for safe havens.

The chart below shows that the value of Tether Gold, and thus gold, has increased by more than 40% over the past year. Especially in recent months, this increase accelerated significantly, partly due to growing uncertainty surrounding the United States and the political situation following Donald Trump's reinauguration.

Looking back to our previous article from October 2024, the gold price then stood at about $2,650 per troy ounce. After Trump's reinauguration on Jan. 20, 2025, the price quoted $2,700, a slight increase of $50. Meanwhile, more than two months later, the price stands at $3,177 per ounce: up nearly 20% since January. This rapid increase underscores the growing distrust and geopolitical tension that his return to the White House brings, both for the U.S. and the rest of the world.

What could drive up the price of XAUT?

Although XAUT, as a stablecoin, follows the price of gold and does not have its price fluctuations like other crypto currencies, some factors could drive demand for XAUT- and thus indirectly its value and adoption:

1. Rising gold price: Any increase in the price of gold translates one-to-one into higher XAUT value. With geopolitical turmoil, inflation or interest rate cuts, the gold price often rises as well, making XAUT more attractive.

2. Global economic uncertainty: In times of financial turmoil, investors seek safe havens. XAUT combines the stability of gold with the flexibility of crypto and is therefore increasingly chosen as an alternative to traditional currencies or volatile altcoins.

3. Loss of confidence in fiat and banks: Following recent bank failures and inflationary pressures in several countries, interest in hard assets such as gold is growing. In this regard, XAUT offers the advantage of 24/7 tradability without physical storage.

cta_here

What could work against the price of XAUT?

Despite the fact that Tether Gold (XAUT) offers many advantages as a digital gold variant, some factors may inhibit its adoption and value development. Here are some possible obstacles:

1. Centralization and trust in Tether: XAUT is issued by Tether, the same company behind USDT. Although the company claims that each token is fully backed by physical gold, there remains skepticism in the market about the transparency of their reserves. Investors who value decentralization may be hesitant to use or hold XAUT as a result.

2. Falling gold price: XAUT is directly linked to the gold price. If the gold price falls, for example, due to increasing confidence in fiat currencies, rising interest rates, or a geopolitical relaxation, the value of XAUT will also automatically fall with it.

3. Limited integration into broader crypto ecosystems: Although XAUT is now available on multiple exchanges and in some DeFi protocols, integration remains relatively limited compared to, say, USDT or USDC. As a result, the practical applicability of XAUT within DeFi and Web3 applications is not yet optimal.

Conclusion

Tether Gold (XAUT) has proven itself over the past year as a reliable and stable digital reflection of physical gold. At a time when many altcoins faced sharp price declines, XAUT remained steadfast and even grew in value. Its linkage to physical gold makes it an attractive alternative for investors looking for protection against inflation, volatility, and geopolitical uncertainty.

The recent gold rally and the reinauguration of Donald Trump have led to a flight to safe havens, with XAUT a clear contender within the crypto market. Still, there are caveats: centralization, competition, and stricter regulations may eventually put pressure on adoption.

Nevertheless, XAUT shows that stability in a digital form is becoming increasingly important within a rapidly changing financial world. For those looking to protect their portfolio and combine exposure to gold with the benefits of blockchain technology, Tether Gold remains a powerful tool both now and in the future.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are, therefore, for educational purposes only.