Institutional investors and central banks are flocking to gold as a safe-haven asset in the face of economic uncertainty, driving gold bullion to record highs. Tether Gold (XAUt) is backed by 7.66 tons of gold, with a market cap over $800 million. XAUt’s price closely tracks physical gold, rising 40% in the past year.

Central banks globally are accumulating gold at a rapid pace, with over 1,000 metric tons bought in 2024. This trend of stockpiling gold has been noted by experts, as geopolitical risks and currency volatility prompt a flight to the precious metal. Institutional investors are also pouring billions into gold ETFs, with the largest inflows in five years recorded in 2025.

The surge in gold demand is driven by escalating economic concerns, including trade wars and inflation risks. The Federal Reserve expects inflation to accelerate in the second half of the year, prompting a cautious stance on monetary policy. Morningstar’s senior economist has delayed expectations of rate cuts due to these inflationary pressures.

Read more at Cointelegraph: Tether Gold (XAUt) Market Cap Soars as Gold Hits Record Highs in 2025