Tokenization of gold performs strongly in a falling market, leading to a surge in demand.

Foresight News reports that, driven by the rise in gold prices, Tether's gold token XAUT has become one of the strongest performing digital assets in the past 24 hours, according to CoinDesk. CoinGecko data shows that XAUT has pumped 3.4%, while the overall gold token zone has risen by 4.3%, and the CoinDesk 20 index has fallen by 2% during the same period. Despite the easing of Sino-US trade tensions, Asian investors still tend to allocate towards gold assets to hedge against uncertainties in US policy and an expanding budget deficit. Tether's XAUT and Paxos' PAXG continue to be favored in the market. Currently, gold is reported at $3218 per ounce in Hong Kong, having retreated after reaching a historical high during US trading hours. Gold is typically sought after during periods of heightened geopolitical or economic uncertainty, and a decline in interest rates makes non-yielding assets more attractive.