Gold-Backed Digital Coins Surge as Gold Hits All-Time High Amid Rising Trade War Anxieties

Gold-Backed Cryptos Surge as Precious Metal Hits New High Amid Market Uncertainty

Gold-backed cryptocurrencies are seeing strong gains as physical gold climbs to record highs, reflecting increased investor demand for safe-haven assets amid global economic tensions. The precious metal has surged 9.7% this year, reaching an all-time high of $2,880 per ounce, driven by escalating trade war concerns and geopolitical instability.

PAX Gold (PAXG) and Tether Gold (XAUT), two of the largest tokenized gold assets, have rallied in tandem with the metal, rising approximately 10% year-to-date. Each of these tokens is backed by one troy ounce of gold, stored in high-security vaults, offering investors a digital alternative to traditional gold ownership.

Gold miners have also benefited from the rally, with the VanEck Gold Miners ETF (GDX) soaring nearly 20% this year, significantly outperforming broader equity markets. On the blockchain, the supply of tokenized gold is expanding, as issuance continues to outpace redemptions. Data from RWA.xyz shows that gold-backed crypto transaction volumes have increased 53.7% in the past month.

Gold’s surge has been fueled by multiple factors, including tariff escalations between the U.S. and China, heightened central bank gold purchases, and seasonal demand from China’s Spring Festival. The World Gold Council reported that global gold demand reached 4,945.9 tons last year, valued at around $460 billion.

Meanwhile, most major cryptocurrencies have lagged behind. Bitcoin (BTC) has managed a modest 3.6% gain year-to-date, pushing the bitcoin-to-gold ratio to its lowest level in three months. Ether (ETH) has struggled, falling 17.6%, while the CoinDesk 20 Index remains mostly flat, up just 0.5%.

However, some analysts believe that bitcoin’s underperformance is temporary. “This is not the end of the ‘digital gold’ narrative—it’s just a shift in market sentiment,” said Mike Cahill, a core contributor to the Pyth Network. “Right now, investors are flocking to traditional safe-havens, but as liquidity returns and risk appetite grows, BTC is positioned for a major rebound.”

Cahill also emphasized that bitcoin remains one of the hardest assets available, second only to gold. “With Trump’s administration showing growing support for crypto, regulatory clarity and institutional adoption could drive BTC to new highs in the near future,” he added.