Tokenized gold tokens XAUt and PAXG prices fell more than 6% each over the past 24 hours as the price of gold slumped to its biggest intraday dip.
Summary
- Tether Gold and PAX Gold fell 6% each as tokenized gold tokens slumped alongside Gold.
- Spot gold fell to $4,122 an ounce, with the precious metal falling to its biggest intraday drop since 2013.
- Bitcoin saw slight gains amid the gold slump, rising to above $112,000.
As Bitcoin price edged up to above $112,000 amid a slight uptick for cryptocurrencies, the top two tokenized gold tokens by market cap bucked the trend. Tether Gold (XAUt) and PAX Gold (PAXG) both slipped by more than 6% to change hands around $4,120 at the time of writing.
Why are XAUt and PAXG down today?
Crypto market’s broader uptick came as stocks surged amid a flurry of positive earnings reports on Wall Street. The upside across equities cascaded into cryptocurrencies. Meanwhile, gold suffered its biggest single-day drop in more than 10 years.
The tanking also saw gold record its steepest intraday fall since 2013.
As gold dropped 6% to under $4,120 an ounce, tokens backed by holdings of the precious metal dumped.
XAUt and PAXG prices mirrored the declines in the top safe haven asset, with an upbeat sentiment for risk-on assets seeing analysts forecast a potential capital rotation from gold to Bitcoin (BTC).
But while Bitcoin holders eye more gains, economist and gold advocate Peter Schiff has other ideas. He agrees the decline is “quite a shakeout,” but says it only offers another chance for BTC holders to dump the digital asset and “buy the real thing.”
“Gold is now down over $200. Quite a shakeout, but all of this volatility is occurring with gold still above $4,100, which was a record high last week. Bitcoin is catching a bid from this selloff, creating another window for Bitcoiners to sell fool’s gold and buy the real thing,” he posted on X.
Tether Gold and PAX Gold prices hit highs of $4,391 and $4,430 respectively on October 17, 2024, gains that aligned with gold’s parabolic surge. However, as the rally that catapulted gold to a new all-time hits a halt, the Tether and Paxos issued tokens are also paring gains.
