In this weeks, ‘The Weekly Update‘ by Arcane Research, they found with data from Tether, that the demand for gold has increased the last few weeks. This is after investors seek store of value assets during these uncertain times.
It has been a dramatic week in the gold markets, as Covid-19 forced gold miners to seize operations.
A shutdown in Switzerland, has led to a massive dislocation between the spot price and the New York price of gold, as banks struggled to deliver physical gold.
The New York gold premium surged to its highest levels in decades, due to the inefficiencies and lockdown effects.
Tether launched its gold backed token (XAUT) in the end of January 2020. Right before the turmoil ignited in the financial markets.
Two months after its inception, the Tether Gold supply has increased by nearly 700% from 4000 tokens to 27 500 tokens. This corresponds too tokens backed by $44.5 million worth of gold.