Introduction
On February 5, 2025, gold hit a record high of $2,880 per ounce and rose nearly 10% this year. Digital tokens like PAX Gold (PAXG) and Tether Gold (XAUT) increased by 10% in line with gold's price. The VanEck Gold Miners ETF (GDX) surged nearly 20% this year. Weekly token mints now exceed burns by roughly $5M and transfer volumes jumped 53.7% month over month. Last year the World Gold Council reported gold demand of 4,945.9 tons worth about $460B. Trading activity for gold-backed cryptocurrencies reached nearly $4.2B in recent weeks. These strong numbers mark a shift as investors seek safe havens amid trade tensions and economic uncertainty.
Gold-Backed Crypto Tokens
Gold price overtime. Source: BullionVault
Gold-backed crypto tokens depend on physical gold to secure their value. Each token represents 1 troy ounce of gold stored in secure vaults. As gold reached $2,880 per ounce investors saw tokens like PAXG and Tether Gold rise by 10%. Data from RWA.xyz shows that transfer volumes increased by 53.7% month over month. Weekly token mints now exceed burns by roughly $5M. Trading volumes for these tokens reached nearly $420M last month. This surge drives investor confidence and offers a transparent alternative in volatile markets.
Source: BullionVault
Traditional Gold Markets and Mining Stocks
Gold saw record demand in 2024. Source: World Gold Council
Traditional gold markets follow a similar trend as the digital sphere. The VanEck Gold Miners ETF (GDX) climbed nearly 20% this year as investors turned to physical assets. Gold demand soared last year with 4,945.9 tons sold for about $460B. Global gold production now reaches around 3,200 tons monthly while reserves total about 190,000 tons. Investors increasingly choose gold as a safe-haven asset amid uncertainty and rising tariff threats from the United States and China.
Heightened global tensions add to gold's appeal. Trade wars and tariffs among the United States, Canada, Mexico and China create market uncertainty. Tariffs in key industries have risen by 15% to 20% with estimated impacts reaching up to $50B. Meanwhile fierce competition in artificial intelligence pits US ChatGPT against China's DeepSeek. This rivalry drives concerns over economic shifts and innovation risks. Gold stands as a reliable asset and a stable store of value. Investors turn to gold when geopolitical and technological risks loom large.
Read more: Bitcoin-Gold Ratio Drops to 12-Week Low as Gold Demand Soars Amid Trade War Fears
Cryptocurrency Performance and Market Trends
BTC vs. Gold price performance overtime. Source: NewHedge
In contrast to gold most major cryptocurrencies showed mixed results. Bitcoin increased modestly by 3.6% and its market capitalization now hovers near $1.1T. Ether declined more than 17.6% from a previous high and its market cap is around $500B. The CoinDesk 20 index gained only 0.5% in the same period. These figures show that nearly 72% of market movement favored safe assets like gold and its derivatives while only about 28% benefited riskier digital tokens.
Expert Insights
Expert voices add clarity to these trends. "Gold’s rally and bitcoin’s dip aren’t a failure of the 'digital gold' narrative. They are a setup. Right now trade war fears and a strong dollar are fueling a flight to traditional safe havens but once liquidity returns and risk appetite rebounds bitcoin could catch up in a big way." Mike Cahill from the Pyth Network stated in a written remark.
He added "Smart investors know BTC is still the hardest asset next to gold and when Trump’s pro-crypto stance materializes into actual policy bitcoin stands to benefit massively."
His insights come as digital asset trading volumes reached nearly $420M recently and overall investor activity surged by 15% across major platforms.
Top Gold-Backed Cryptocurrencies for the Bull Run
As the bull run gathers momentum, investors are increasingly eyeing gold-backed cryptocurrencies as a strategic hedge, blending the intrinsic value of physical gold with the agility of digital assets. Here’s a closer look at five top tokens in this space:
Tether Gold (XAUT)
Tether Gold (XAUT) offers a seamless fusion of traditional wealth with modern technology by digitally representing physical gold. Trading around the $2,885 mark, XAUT has maintained steady momentum with modest gains—recording a 0.7% increase over 24 hours and a 3.7% uptick over the past week. With a robust 24-hour trading volume of over $10 million and a market cap exceeding $711 million, Tether Gold stands out as a reliable and liquid asset, enabling investors to diversify their portfolios while enjoying the stability of gold without the logistical challenges of physical ownership.
Pax Gold (PAXG)
PAXG/USDT price chart | Source: KuCoin
Launched in September 2019 by the team behind Paxos Standard, Pax Gold (PAXG) has pioneered the concept of gold-backed digital assets, allowing investors to buy and trade fractional ownership of physical gold on the Ethereum blockchain. Priced at roughly $2,906, PAXG has seen steady performance—with a slight 0.3% gain over the past day and a healthy 4.1% increase over the week—supported by a substantial 24-hour trading volume of about $43.7 million and a market capitalization nearing $595 million. Widely available on major exchanges, including KuCoin where it boasts impressive monthly volumes, PAXG has become a tactical option for those seeking both growth and diversification in turbulent markets.
Quorium (QGOLD)
Quorium (QGOLD) is emerging as a compelling gold-backed cryptocurrency that marries the enduring value of gold with the efficiency of blockchain technology. With a current price around $2,866, QGOLD has demonstrated a steady performance trend—a modest 0.4% rise over 24 hours and a 2.6% gain over the past week—while supporting a market cap in the vicinity of $240 million. Although its 24-hour trading volume is relatively lower compared to some peers, Quorium’s appeal lies in its potential to offer a stable, yet dynamic, alternative for investors looking to anchor their digital portfolios with a tangible asset in times of market exuberance.
Kinesis Gold (KAU)
Kinesis Gold (KAU) brings a unique twist to the digital gold space by integrating the ease of blockchain transactions with the storied stability of gold. Trading at about $92 per token, KAU has shown consistent, albeit modest, movement with a 0.1% change in both the last hour and over 24 hours, and a 2.8% increase in the past week. Its market capitalization stands at roughly $133 million, supported by a moderate trading volume that underscores its focused investor base. Kinesis Gold is particularly attractive for those who value a hybrid approach—combining the liquidity and speed of digital assets with the enduring security of gold—as market conditions turn bullish.
VeraOne (VRO)
VeraOne (VRO) represents a fresh and innovative entry into the gold-backed cryptocurrency arena, appealing to early adopters with its blend of digital finance and physical asset security. Valued at approximately $80.95 per token, VRO has recorded a more dynamic 4.0% gain over the past 24 hours and a 4.9% rise over the week, even though its market capitalization is modest at around $23.9 million. With a relatively lower trading volume indicating its nascent stage in the market, VeraOne nonetheless shows promising growth potential, making it a dark horse for investors willing to explore emerging assets as part of a diversified, bullish strategy.
Each of these tokens not only reflects the growing synergy between traditional precious metals and modern blockchain technology but also offers a diverse range of opportunities for investors looking to capitalize on the market’s renewed vigor.
Conclusion
The market now favors safe-haven assets as gold continues to drive investor confidence. Gold's record price of $2,880 per ounce and a 10% rise in digital tokens like PAXG and Tether Gold signal robust demand in uncertain times. Traditional gold markets show strength with the VanEck Gold Miners ETF rising nearly 20% and global gold demand reaching $460B last year. Although Bitcoin and Ether saw only modest gains and declines respectively, future policy shifts and improved liquidity could spark a significant rebound. Strong technical figures and expert insights support that both gold and its digital derivatives remain key investment vehicles amid ongoing trade tensions and economic challenges.
