Gold-Backed Cryptocurrencies Decline After $2.5 Trillion U.S. Market Sell-Off
Gold-backed cryptocurrencies Paxos Gold (PAXG) and Tether Gold (XAUT) experienced a decline following record highs amid a global financial sell-off. Key points include:
- U.S. equities lost $2.5 trillion after President Trump's tariff announcement.
- PAXG reached an all-time high of $3,191; XAUT peaked at $3,190, surpassing spot gold's peak of $3,167.
- Both tokens retreated to $3,074 and $3,064 respectively, as gold fell to $3,038 per ounce.
- The S&P 500 faced one of its sharpest declines since 2020, and the Nasdaq 100 recorded its largest single-day point loss.
- Despite recent losses, gold-backed tokens are up 17% year-to-date, fueled by Federal Reserve interest-rate cuts and strong demand from Asia.
- In February, central banks reported net gold purchases of 24 metric tons, led by Poland with 29 tons added to its reserves.
Market uncertainty continues to drive volatility in both equity and gold-backed assets.