Gold has surged to yet another record high past $5,300 per ounce as geopolitical tensions, weakening confidence in the U.S. dollar, and jitters around central bank independence drive global investors toward safe-haven assets. Among the buyers riding that historic rally is Tether, the world’s largest stablecoin issuer, which is significantly expanding its exposure to physical gold. Speaking to Reuters , Tether CEO Paolo Ardoino said the company now plans to allocate 10%–15% of its investment portfolio to physical gold, deepening a multi-year strategy that began during the COVID-19 pandemic and accelerated as global tensions rose. Tether already holds around 130 metric tons of physical gold, including 27 tons added in Q4, and has been purchasing roughly two tons every week. “It’s hard to decide which one I like the most,” Ardoino said of choosing between Bitcoin and gold. “It is almost like you have two children and have to decide which one is more beautiful.” Gold Surges as Investors Seek Safety Tether’s bullish stance comes as demand for gold reaches levels not seen in modern financial history. This month alone, bullion has soared over 20% and climbed past multiple price milestones. Gold price chart (Source: CoinCodex) Analysts say the move reflects a broad re-evaluation of safe-haven assets, particularly as both gold and U.S. equities trade near historic highs. “The world is not in a happy place at this moment,” Ardoino said. “Gold is making all-time highs every single day. Why? Because everyone is scared.” How Tether Uses Its Gold Reserves Tether’s gold holdings back two of its products: USDT, the world’s largest dollar-backed stablecoin with $186 billion in circulation. XAUT, Tether’s gold-backed token, with $2.7 billion in supply. The company said it ramped up gold purchases last year to support demand for both assets, particularly XAUT, which has benefited from the broader rally in gold-linked products. Tether maintains its bullion in Swiss vaults and insists on retaining full ownership of the physical gold it holds. While Ardoino would not disclose the total size of Tether’s investment portfolio, he confirmed the company’s long-term direction: holding around 10% of reserves in Bitcoin and 10%–15% in physical gold as part of a broader diversification strategy. Gold’s Record Run Shows No Signs of Slowing With bullion up 22% year-to-date and 64% over the past year, the metal shows no signs of slowing down just yet. Daily chart for the price of gold (Source: TradingView) An ascending price channel has formed on Gold’s daily chart as the metal continued to print higher highs and higher lows over the past fortnight. That rising channel saw the price of gold break above a minor resistance level at $5,184.41. Following the break above this technical barrier, the metal’s price has faced some selling pressure. Nevertheless, the rally could persist over the short term if gold closes today’s trading session above the $5,184,41 resistance. This could give it the technical foundation needed to rise even higher. Conversely, a drop back below the resistance could result in some profit taking that might push the price of gold down to the nearest support at $4,552.10. Looking at technical indicators, it seems a bullish scenario is more likely to play out over the coming 48-72 hours. Specifically, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) show that buyers have the upper hand over sellers in terms of momentum and strength. The MACD line is breaking away above the MACD Signal line, which is indicative of strengthening momentum. Traders will just want to watch for any signs of the gap between the two technical indicators shrinking, because this could be an early warning sign that momentum is starting to turn. Meanwhile, the RSI line is positioned well above its Simple Moving Average (SMA) line. While this is usually seen as a sign of overwhelming buyer strength, the current RSI reading near 90 suggests overextended conditions. This could be followed by a pullback. There have, however, been instances in the past where the RSI remains high for sustained periods of time. This is usually when a price is pumping.
