The per-ounce gold price in USD hits a new high, the logic and dilemma of XAUT allocation

As global economic uncertainties intensify, gold’s appeal as a traditional safe-haven asset re-emerges. In 2025, spot gold prices have experienced a remarkable surge, once breaking through $4,550 per ounce, with an annual increase of approximately 65%. During this gold bull market, many investors are beginning to consider: how to efficiently allocate gold assets has become a new challenge. For cryptocurrency holders, Tether’s issued gold token XAUT is becoming a noteworthy option worth serious consideration.

Why Gold Continues to Rise: The Underlying Support Behind the Per-Ounce Dollar Value

The rise in gold prices is not a fleeting phenomenon. According to the latest insights from the World Gold Council, this rally is supported by multiple factors. First, geopolitical risks continue to ferment, with recent US actions against Venezuela reinforcing safe-haven sentiment; second, the US Supreme Court is about to rule on tariff policies, which could have profound impacts on trade patterns, further boosting gold demand.

More importantly, capital flows drive the trend. In 2025, global investors injected unprecedented funds into gold ETFs, with North American markets contributing the majority, and gold holdings in Asia nearly doubling. This indicates that institutional investors are heavily entering the gold market, further pushing up the USD price per ounce of gold.

UBS’s latest forecast is particularly noteworthy. The firm has raised its mid-2026 gold price target to $5,000 per ounce, with an expected year-end level of $4,800 per ounce. Compared to the current $4,318 per ounce, this suggests a potential 15-20% increase within the next year.

The Four Advantages of XAUT: Why Choose a Gold Token Over Traditional Forms

Faced with the demand for gold allocation, investors have many options. Traditional physical gold, gold ETFs, gold futures, and now gold tokens each have their pros and cons. But the reason XAUT is gradually becoming the most关注ed gold token in the crypto ecosystem mainly stems from the following advantages:

First, a solid credit foundation. As the world’s largest stablecoin issuer, Tether’s credit backing is crucial. Public data shows that 15% of Tether’s quarterly profits are regularly reinvested in Bitcoin purchases; recently, it bought 8,888 BTC at once, with total holdings surpassing 96,000 BTC, valued at about $7.8 billion. This aggressive asset allocation demonstrates its strong financial capacity. Meanwhile, in Q3 2025, Tether purchased 26 tons of gold, bringing its total gold reserves to 116 tons, ranking among the top 30 global gold holders.

Each XAUT token is backed 1:1 by physical gold stored in secure vaults, ensuring the token’s value is anchored to real assets. The market cap of around $2.3 billion also reflects sufficient liquidity, allowing investors to enter and exit relatively easily.

Second, innovative valuation units lower the entry barrier. Tether recently launched a new accounting unit for XAUT called “Scudo,” which is of profound significance. The minimum unit of traditional XAUT is 0.001 oz (one-thousandth of an ounce), corresponding to roughly $4.3-4.5 at current prices. With the introduction of Scudo, investors can price and trade in simpler units, solving the calculation difficulties caused by small decimal places, making gold more practical in daily economic activities. This significantly reduces psychological barriers and operational complexity for ordinary investors.

Third, a complete trading ecosystem. XAUT is listed on major centralized exchanges such as Bybit, OKX, and Bitget, and also supports decentralized platforms like Uniswap, Curve, and Fluid. This means investors can choose spot trading or leverage trading based on their needs, and the diversified liquidity ensures efficient price discovery and convenient trading execution.

Fourth, industry position support. Tether’s leading position in the stablecoin sector provides strong backing for XAUT’s development. According to Bloomberg citing Artemis Analytics, global stablecoin trading volume surged 72% in 2025, reaching a record high of $33 trillion. USDT’s trading volume reached $13.3 trillion, and USDC’s $18.3 trillion, together accounting for the vast majority of stablecoin trading. This market dominance ensures broad support for XAUT at the infrastructure level.

The Other Side of the Allocation Logic: Risks and Limitations That Must Be Recognized

However, every investment carries risks, and XAUT is no exception. First, the token’s price volatility is directly affected by the spot gold price; macroeconomic policy shifts or waning safe-haven sentiment could trigger rapid adjustments. Second, although Tether’s credit is relatively solid, any centralized issuer faces compliance or operational risks. Furthermore, compared to traditional gold ETFs, gold tokens still have limited liquidity depth, and large transactions may encounter slippage risks.

Finally, it is important to emphasize that allocating to gold tokens should be part of a diversified portfolio, not a gamble on a single asset. For investors concerned about fiat currency depreciation and declining dollar purchasing power, converting a moderate portion of liquid assets into USD-denominated gold assets can serve as a hedge and value-preservation measure. But low-risk investors should first clarify their investment goals and risk tolerance before participating.

In the context of a potential super cycle for gold, the USD price per ounce still has room for further growth. For investors seeking to hedge against fiat devaluation and USD exchange rate fluctuations, XAUT—with its high liquidity, low entry barrier, and innovative valuation—offers a path worth exploring but one that requires cautious approach.