In brief:
₿- Tether is expanding into the gold sector with $8.7 billion in reserves, a growing gold-backed stablecoin, and new investments in mining and royalty companies.
₿- Goldman Sachs predicts gold prices could reach $4,000–$5,000 per ounce, as political risks, inflation concerns, and central bank demand drive the metal’s rally.
Tether, the company behind the world’s largest stablecoin USDt, is making bold moves into the gold sector as the precious metal’s rally accelerates. According to reports, the firm has entered talks with mining and investment groups about deploying capital across the gold supply chain, including mining, refining, trading, and royalty companies.
$8.7 billion in gold reserves back Tether Gold token
The strategy comes as Tether looks to diversify its $162 billion reserves, which are currently dominated by U.S. Treasuries and cash equivalents. By expanding into commodities, the company is seeking to balance its portfolio while capitalizing on growing investor demand for gold.
Tether has already accumulated $8.7 billion in physical gold, stored securely in Zurich. These holdings back its gold-pegged stablecoin, Tether Gold (XAUT), which carries a market capitalization of about $1.4 billion. The token offers investors an option to hold gold exposure on the blockchain, blending traditional safe-haven assets with digital finance.
On Friday, Tether increased its stake in Elemental Altus Royalties, a Canadian gold royalty company, through a $100 million share purchase. This lifted its ownership to 37.8%, giving the stablecoin issuer deeper exposure to revenues from global gold mining operations.
Gold rallies as political risk drives demand
Tether’s timing coincides with a powerful rally in gold. The metal has surged 35% this year, trading above $3,500 per ounce, making it one of 2025’s top-performing assets.
Investors and central banks alike have been piling into gold as concerns grow over political instability, debt levels, and waning confidence in traditional safe havens such as the dollar and government bonds.
Goldman Sachs forecasts the rally could extend further, predicting prices may hit $4,000 per ounce by mid-2026. In a more extreme scenario, if political pressure undermines the Federal Reserve’s independence, prices could climb toward $5,000.
Fed risks, inflation fears, and central bank buying
Analysts warn that a politicised Fed could be more inclined to cut rates, fueling inflation and weakening long-term Treasury demand. Recent moves by Donald Trump to remove Fed governor Lisa Cook have heightened those fears.
“Gold is a store of value that doesn’t rely on institutional trust,” noted Daan Struyven, co-head of global commodities research at Goldman Sachs.
Meanwhile, central banks have stepped up gold purchases in recent years, while private investors increasingly see gold as a hedge against both inflation and geopolitical risk. BlackRock analysts argue that traditional diversifiers like long-term Treasuries no longer provide the same protection, leaving gold as one of the few reliable safe havens.
Stay informed,
Rodcas Consulting Group