PANews, March 1: According to Cointelegraph, Iggy Ioppe, former Chief Investment Officer at Credit Suisse and current CIO of liquidity infrastructure firm, stated that due to the CME gold futures market closing every Friday at 5:00 PM Eastern Time and reopening on Sunday at 6:00 PM, traditional futures markets are suspended during this period, while tokenized gold assets such as PAX Gold (PAXG) and Tether Gold (XAUt) become the only publicly tradable markets. During this time, nearly all observable gold price formation occurs on-chain, meaning tokenized gold assumes nearly 100% of the price discovery function over the weekend. This week, amid geopolitical shocks—including U.S. and Israeli airstrikes on Iran—tokenized gold prices rose on safe-haven demand, briefly breaking key levels, while major crypto assets like Bitcoin and Ethereum experienced corresponding declines. Key participants in these on-chain gold markets currently include market makers, cross-market liquidity providers, and crypto-native macro traders, who utilize tokenized gold for arbitrage, collateralization, hedging, and yield strategies. Some institutions monitor weekend on-chain gold movements to assess potential “gap risk” ahead of the CME opening, but generally treat it as a reference signal rather than a direct basis for position building.
Tokenized Gold Handles Nearly 100% of Price Discovery During Weekend Market Closure
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Summary
Ethereum’s price today fell below $2,100 as tokenized gold assets such as PAX Gold (PAXG) and Tether Gold (XAUt) led price discovery during the CME weekend closure. With the Fear & Greed Index signaling extreme caution, tokenized gold experienced sharp gains amid rising geopolitical tensions. Traders utilized these assets for arbitrage and hedging, while some institutions monitored weekend movements to assess gap risk ahead of the CME’s reopening. Major crypto pairs, including Ethereum’s price today, declined as investors rotated into safer assets.
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