#cryptonews
As economic uncertainties mount, investors are increasingly turning to gold-backed cryptocurrencies as a hedge against volatility. With gold prices nearing $3,000 per ounce, leading financial institutions, including Citi and UBS, have raised their price forecasts, further fueling demand for digital assets tied to gold.
As gold inches closer to $3,000 per ounce, investors are increasingly turning to assets like PAX Gold (PAXG) and Tether Gold (XAUT) for exposure to the commodity without the complexities of physical ownership.
The latest gold price trends reinforce this shift. As seen in the gold price chart, the metal has steadily climbed amid renewed investor interest, bolstered by rising institutional price targets.
Gold has climbed 9% year-to-date, extending its 2023 gains of 13.1%, and is approaching its all-time high of $3,000 per ounce and with that gold-backed altcoins have emerged as an attractive hedge against market volatility.
UBS followed suit, adjusting its forecast to $3,000 per ounce while emphasizing gold’s resilience as a store of value.
PAX Gold (PAXG) is currently priced at $2,886, with a market cap of approximately $594 million. Each token represents one fine troy ounce of gold held in LBMA-approved vaults, ensuring full redemption capabilities.
Gold-pegged cryptocurrencies offer investors the stability of gold with the flexibility of digital assets. PAX Gold (PAXG) and Tether Gold (XAUT) are among the leading gold-backed altcoins, each maintaining a 1:1 ratio with physical gold stored in secure vaults.
Tether Gold (XAUT) is trading at $2,861, with a market cap of around $705 million. Unlike PAXG, XAUT does not have a fixed maximum supply but maintains strong backing with physical gold reserves.
– Despite a 55% drop in 24-hour trading volume, PAXG remains a sought-after asset for investors hedging against inflation.
Unlike purely speculative cryptocurrencies, gold-backed tokens provide tangible value and reduced volatility, making them particularly appealing in uncertain economic conditions.
The surge in gold prices has shifted investor focus towards stable, asset-backed digital currencies
Investors looking to diversify their crypto portfolios with real-world asset backing are increasingly seeing these tokens as an alternative to traditional stablecoins.
Experts predict that as gold prices continue to rise, gold-backed altcoins will further cement their position as secure digital stores of value.