Gold hits new highs, US dollar depreciates—Tether XAUT becomes a new choice for asset allocation

With the continuous decline of the US dollar exchange rate, an increasing number of investors are beginning to consider how to hedge against inflation and fiat currency devaluation through precious metals like gold. Based on the long-term trend of the US dollar’s historical exchange rates, the depreciation of the dollar relative to other major currencies over the past 50 years has become a settled fact, which also explains why gold, as a traditional safe-haven asset, is experiencing rising demand for allocation. Against this backdrop, the gold token XAUT issued by Tether is gradually becoming the preferred choice for crypto investors to allocate into gold assets.

US Dollar Weakening, Gold Becomes a Hedge Against Inflation

The long-term depreciation of the US dollar against other major currencies is an undisputed fact. Looking at the 50-year data of the US dollar’s exchange rates, the dollar’s rates against the Chinese yuan, euro, and other key currencies show a continuous downward trend, indicating that the dollar’s purchasing power is eroding year by year.

In this context, traditional fiat savings are no longer sufficient to preserve real asset value. In contrast, gold, as a hard asset beyond the monetary system, inherently possesses anti-inflation properties. Regardless of fluctuations in the US dollar exchange rate, gold’s intrinsic value remains relatively stable, which is the fundamental reason why central banks and institutional investors worldwide continue to increase their gold holdings.

Continuous Gold Rally—Analysis of Three Major Supporting Factors

2025 has already become a “star year” for the gold market. Spot gold has risen approximately 65% throughout the year, reaching a record high of $4,549.96 per ounce, with over 50 new highs set during the year. This remarkable rally is not a fleeting phenomenon but is supported by deep-rooted factors.

Dual Support from US Policy and Geopolitical Risks

According to the latest report from the World Gold Council, decisions by the US Supreme Court regarding tariff policies will significantly impact US trade policy, potentially providing support for gold. Additionally, ongoing geopolitical conflicts (recent US actions in Venezuela are a recent example) also provide strong support for gold prices. These uncertainties have driven global demand for safe-haven assets.

Surge in ETF Capital Inflows

2025 has seen unprecedented capital inflows into gold ETFs from global investors. North American funds contributed the majority of the global inflows, while gold holdings in Asia nearly doubled, and European markets also showed significant growth. This capital flow has further driven up gold prices.

Strong Signal from Major Banks Favoring the Bullish Outlook

UBS Group recently reiterated a bullish stance and raised its gold price targets for March, June, and September 2026 to $5,000 per ounce (previously $4,500). The firm expects gold prices to fluctuate around $4,800 per ounce by the end of 2026. This optimistic outlook from top global investment banks reflects their confidence in the long-term prospects of gold.

Four Advantages of Tether XAUT Allocation

Since the outlook for the gold market is optimistic, investors’ next question is how to effectively allocate into gold. Among many options, the gold token XAUT issued by Tether is gradually becoming the preferred choice due to its unique advantages.

First, Strong Corporate Strength and Sufficient Gold Reserves

As the world’s largest stablecoin issuer, Tether has impressive financial strength. Recently, the company purchased 8,888 Bitcoin (worth about $780 million), bringing its publicly held Bitcoin to over 96,000 coins. In terms of gold allocation, Tether bought 26 tons of gold in Q3 2025, bringing its total gold holdings to 116 tons, ranking among the top 30 largest gold holders globally. This scale of holdings demonstrates the sufficiency of gold reserves backing XAUT. Moreover, Tether currently distributes 15% of its quarterly profits to Bitcoin, indicating a strong commitment to long-term asset allocation.

The current market cap of approximately $2.3 billion for XAUT also proves its ample liquidity.

Second, Innovative Breakthrough with Scudo Pricing Unit

Tether recently launched a new pricing unit for Tether Gold (XAUT) called “Scudo,” which is a significant innovation. According to official definitions, 1 Scudo equals one-thousandth of a troy ounce of gold or one-thousandth of an XAUT, roughly equivalent to $4.4.

This innovation addresses a long-standing pain point for gold token holders—dealing with cumbersome long decimal places during transactions. By introducing a simpler, more intuitive pricing method, Scudo makes gold more practical in daily economic activities and significantly lowers the barrier to gold token allocation. Tether Gold remains fully backed by physical gold stored in secure vaults, and the launch of Scudo does not alter the fundamental structure and backing of XAUT.

Third, Comprehensive Trading Ecosystem Support

XAUT is already tradable on major centralized exchanges (CEX) such as Bybit, OKX, Bitget, and decentralized exchanges (DEX) like Uniswap, Fluid, Curve. Investors can not only buy spot but also engage in leveraged futures trading, providing more strategic options for professional traders.

Fourth, Continued Strengthening of Tether’s Market Dominance

Tether’s leading position in the stablecoin sector provides strong support for XAUT’s development. According to Bloomberg citing Artemis Analytics data, in 2025, global stablecoin trading volume surged 72% year-over-year to a record $33 trillion. Among them, Circle’s USDC traded $18.3 trillion, while Tether’s USDT traded $13.3 trillion, together accounting for the vast majority of stablecoin trading activity. This market position ensures XAUT’s advantages in application promotion and liquidity maintenance.

How Ordinary Investors Can Allocate into Gold Assets

For ordinary investors with limited liquidity and lower risk appetite, gold token allocation is becoming a new option. Combining the ongoing decline of the US dollar exchange rate with the continuous rise of the gold market, converting part of fiat currency into XAUT gold tokens allows participation in the gold rally while hedging against US dollar devaluation—an effective dual strategy.

Notably, the launch of the Scudo pricing unit enables investors to start gold allocation with just a few dollars. This low-threshold design greatly enhances the attractiveness of gold tokens to ordinary investors, and it is expected that the popularity of this application will further increase in 2026.