Gold prices approach $5,600! Gold stablecoins become a safe haven for digital assets—how to position yourself?

On January 29, 2026, the spot gold price reached a high of $5,598.75 / ounce, with this year’s increase approaching 30%.

Amidst intense market volatility and shaken confidence in the fiat currency system, investors are eager to find reliable asset refuges. As the traditional safe-haven king, gold is merging with the digital world in an unprecedented way—gold stablecoins.

01 Market Hotspot

In early 2026, the global financial markets were shaken by the strong performance of gold. As of January 29, the spot gold price has approached the $5,600 / ounce mark, with an increase of nearly 30% since the beginning of the year, far exceeding most institutional forecasts for the full-year rise.

The persistent “fever” of gold is driven by multiple factors. The primary catalyst is escalating geopolitical tensions. U.S. President Trump’s remarks about taking a tough stance on Iran have heightened market concerns over military conflict.

Meanwhile, doubts about the independence of U.S. monetary policy are deepening. Against the backdrop of shaken confidence in the fiat currency system, gold is being redefined as a “value anchor not dependent on any sovereign credit.”

02 The Gateway to Gold in the Crypto World

In the digital asset space, gold stablecoins offer investors a new way to directly access gold. These tokens essentially map ownership of physical gold onto the blockchain, giving traditional gold investments the characteristics of crypto assets.

Gold stablecoins differ from traditional fiat-backed stablecoins. They are directly pegged to the value of physical gold, with each token representing a specific amount stored in professional vaults.

For example, the leading products in the market include:

• PAX Gold (PAXG): each token represents one ounce of gold stored in a London approved delivery vault.
• Tether Gold (XAUt): also based on 1 ounce, with the gold backed and stored in professional vaults.

The core advantage of these products is their combination of physical gold properties with the convenience of digital assets, enabling 24/7 trading, instant global transfers, and borderless ownership transfer.

03 Comprehensive Analysis of Mainstream Gold Stablecoins

In 2026, the market offers various gold stablecoins, each with its own features suitable for different investor needs. Below is a key comparison of the main products:

It’s worth noting that PAXG and XAUt are currently the most liquid and widely accepted gold stablecoins. Trading activity for these two tokens is especially active on the Gate platform.

In terms of price performance, PAXG has risen 5.76% in the past 24 hours and has increased 27.55% over the past month, closely tracking the spot gold price.

04 Structural Changes in Gold Demand

Behind this gold bull market are structural shifts in demand. Suki Cooper, Head of Global Commodities Research at Standard Chartered Bank, pointed out that the current rise in gold prices is not mainly driven by tactical buying but by structural changes.

Continuous buying from institutional investors and central banks has become a key support. Goldman Sachs forecasts that in 2026, central banks worldwide will purchase about 60 tons of gold each month.

The crypto industry itself has become an important buyer of gold. In Q4 2025, the world’s largest stablecoin issuer, Tether, increased its gold holdings by approximately 27 tons, reaching a scale comparable to sovereign gold reserves.

This “decentralized” distribution of demand reduces the market’s reliance on a single source of funds, making the price foundation more stable.

05 Gold Stablecoin Investment Guide

When investing in gold stablecoins on platforms like Gate, investors should focus on several key aspects:

Prioritize tokens with clear redemption pathways, high transparency, and good liquidity. For ordinary investors, PAXG and XAUt are preferred due to their broad market acceptance.

In risk assessment, since the value of gold stablecoins is directly linked to the physical gold price, they will fluctuate with gold prices and are not “stable” in the traditional sense. Additionally, consider issuer risk, custody security, and regulatory changes.

In terms of investment strategy, investors should clarify their goals. For long-term hedging, holding the tokens directly is suitable; for short-term gains, related derivatives offered by Gate can be utilized.

Regarding security, mainstream gold stablecoins are usually audited periodically by independent third parties, and reserves are stored in secure vaults. For example, PAXG’s gold is stored in LBMA-approved vaults in London.

As of January 29, the world’s largest gold ETF—SPDR holdings reached a record high of 1,089.96 tons. Meanwhile, spot gold continues to challenge the $5,600 mark during Asian trading hours.

On digital asset platforms like Gate, trading volume of gold stablecoins is also rising, with investors voting with their wallets to express recognition of this emerging asset class of digital gold.