The new price high was set by the gold-backed XAUT token. Its cost reached $1902. The reason for the rise in the value of the token was the increase in the price of a troy ounce of gold. Over the past several years, gold has traded consistently in the $1550 - $1600 range. However, amid the coronavirus pandemic and falling markets, gold has been treated as a defensive asset. As a result, the cost of the precious metal went up noticeably.
According to Tether CTO Paolo ARDOINO, in times of uncertainty, people like having accessibility to gold and Tether Gold is clearly a product that resonates in these times. A further rise in the price of the token is possible as a result of the announcement of the US government on the adoption of the second bill, which is aimed at conducting a second additional emission of the dollar.
Peter SCHIFF, a proponent of gold and traditional assets, believes that those investors who invest in Bitcoin are not looking for stability. In his opinion, investing in gold or a gold-backed stablecoin, investors have a lower risk of loss.
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