Tokenized gold such as Tether’s Xaut and Paxos’ Paxg remained a favorite of Asian crypto investors as investors are seeking safe shelter despite breaking the tensions of the trade war.
On-chain data shows that Tether’s Xaut was the top 10 market performer of all digital assets. Tether tokenized gold, the largest by market capitalization, has increased by 3.4% over the past 24 hours.
Coingecko’s data shows a 4.3% increase in the sector over the past 24 hours compared to Coindesk 20, the largest digital asset performance metric.
Gold prices first fell early on Asian trading day after breaking an all-time high at the end of our time. It is currently trading in Hong Kong for $3,218.
Asian stock markets showed mixed performance in the morning session, with Hong Kong’s Hangsen rising 0.2%, Shanghai’s SSE rising 0.12%, Taiex rising 1.6%, and Tokyo’s Nikkei 225 falling 3.5%.
Gold usually gathers during periods of increasing economic or geopolitical uncertainty, as investors seek the safety of assets seen as valuable storage amidst volatility. Trade tensions have settled, but investors are concerned about the lack of predictability of policies from the White House.
Gold also benefits from the opposite relationship with interest rates. Lower interest rates reduce the opportunity costs of retaining interest-free and make them more attractive.
Investors are also worried that the US budget deficit will skyrocket.
China’s state media also reported that stimulus packages are under the work of the country, suggesting interest rate cuts and government spending of $136 billion.
Other market leaders include Curve Dao’s CRV, an increase of 18% per day after news that the US plans to significantly ease rules and enforcement related to Decentralized Finance (DEFI).