Cryptocurrencies with golden backs like Paxos Gold (Paxg) and Tether Gold (XAUT) withdrew from the record peaks on Friday in the middle of a world sale in the financial markets which erased 2.5 billions of US dollars alone in a single day after the President Donald Trump unveiled his reciprocal prices.
The tokens, which are supported by physical gold and follow its price, initially rallied while the investors asked for the shelter of the uncertainty that the prices introduced. Gold is generally considered a paradise investment, but large -scale losses in stock markets often force investors to liquidate safer assets to cover margin calls and withdraw losses.
PAXG climbed to a summit of $ 3191 with near XAU to reaching $ 3,190, exceeding the GOLD spot peak of $ 3,167. The initial increase did not last, Paxg falling to $ 3,074 and XAUT at $ 3,064, reflecting the removal of Gold at $ 3,038 per ounce.
The prices announced on Wednesday frightened the markets on Wednesday with their extent and unclear targets. Investors, already nervous from a volatile global perspective, responded quickly. The S&P 500 posted one of its steepest drops since the panic of the era of the time to 2020 Thursday, while the Nasdaq 100 saw its worst loss of points in a day in history according to Kobeissi’s letter. The rout extended to a second day, the MSCI World index fell 4.3% on Friday after losing 3.7% on Thursday.
However, gold tokens have been 17% higher since the start of the year. The rally was motivated by interest rate reductions in the federal reserve, a sustained request from Asia and a wave of central banks buying earlier in the year. In February, the central banks reported gold purchases in 24 metric tonnes, according to the World Gold Council.
Poland led the pack, adding 29 tonnes and bringing its total reserves to 480 tonnes, now 20% of its foreign currency assets. China, Turkey, Jordan and Qatar have also increased their assets.
