Gold-Backed Tokens Surge Amid Rising Gold Prices and Weakening Dollar

According to BlockBeats, the market capitalization of gold-backed tokens has surpassed $2.72 billion, marking a 1.7% increase over the past 24 hours. This surge is attributed to the recent highs in gold prices, a weakening dollar, and heightened risk aversion ahead of interest rate meetings. PAX Gold (PAXG), a digital currency issued by Paxos and pegged to gold, reported a 24-hour trading volume of $120 million, with a total market capitalization reaching $1.05 billion. Similarly, Tether Gold (XAUT), issued by Tether and also pegged to gold, recorded a 24-hour trading volume of $140 million, with its total market capitalization hitting $1.3 billion. Both PAXG and XAUT are digital currencies that are each backed by one ounce of gold, reflecting the growing interest in gold-backed digital assets as a hedge against economic uncertainties.