Stock Turmoil Pulls Gold-Backed Cryptos Down From Peak Levels

Gold-Backed Tokens Dip After Brief Surge as Market Chaos Sparks Broad Sell-Off

Gold-pegged cryptocurrencies, including Paxos Gold (PAXG) and Tether Gold (XAUT), fell from fresh all-time highs on Friday, caught in a wave of selling that rocked global financial markets following U.S. President Donald Trump’s sweeping tariff announcement.

PAXG and XAUT initially surged, with both hitting record levels—$3,191 and $3,190, respectively—outpacing spot gold’s peak of $3,167. The rally reflected investors’ flight to safety amid growing uncertainty. But as the broader sell-off deepened, even these safe-haven plays couldn’t hold their ground. PAXG dropped to $3,074, XAUT to $3,064, and gold itself slid to $3,038 per ounce.

Market strategists say the reversal wasn’t due to a loss of faith in gold, but rather a scramble for liquidity. As equities tanked—triggering one of the worst two-day stretches since the pandemic-era panic—many investors were forced to cash out winners to cover losses elsewhere.

The S&P 500 plunged nearly 5% on Thursday, and the Nasdaq 100 notched its largest-ever one-day point drop. Global losses mounted into Friday, with the MSCI World Index extending its decline to 4.3%.

Still, gold-backed digital assets have logged strong gains in 2025, up roughly 17% year-to-date. A combination of lower interest rates, steady demand in Asian markets, and increased central bank gold buying have supported the trend.

February data from the World Gold Council showed net purchases of 24 metric tons by central banks. Poland led the charge, adding 29 tons to bring its holdings to 480 tons—now accounting for 20% of its foreign reserves. China, Turkey, Qatar, and Jordan were also notable buyers.