Gold Market Shifts to State Treasuries and Stablecoin Issuer Tether
The gold market has undergone a significant shift in its center of gravity. While geopolitics and Federal Reserve policy grab headlines, state treasuries and stablecoin issuer Tether are now providing the metal's most reliable support.
On Monday, gold traded at $4,107 per troy ounce, up 0.20 percent from Friday's close. The pullback on Friday was attributed to President Trump's announcement that he had halted planned strikes on Iran and fresh talks with Tehran would begin.
The market seized on the de-escalation signal, but oil prices reacted more violently, tumbling over $4 per barrel. Despite this, UBS analyst Staunovo framed the oil drop as net positive for bullion due to its effects on interest rates.
Central banks are also playing a crucial role in gold's current state. They purchased a net 289 tonnes in the second quarter, up 62 percent year-on-year and the largest quarterly accumulation since Q4 2024. Poland led the charge with 82 tonnes, while China added 33 tonnes.
Tether, the stablecoin issuer, bought 14 tonnes of gold in Q2 and now holds over 146 tonnes valued at roughly $18.8 billion.