Amid the escalating tensions between Hamas and Israel, cryptocurrencies backed by gold have shown significant gains among the top 100 cryptocurrencies by market capitalization. This increase in value is directly linked to the rising price of gold, which has seen an upswing due to the recent conflict.
What Happened: Some noteworthy gainers in this context include Tether Gold (CRYPTO: XAUt), Monero (XMR/USD), and PAX Gold (PAXG/USD), all of which have experienced over a 1% increase in value today. This surge in the gold-backed crypto market contrasts with the decline faced by other major cryptocurrencies like Bitcoin (BTC/USD) and Ethereum (ETH/USD), as well as several altcoins.
According to the latest data from CoinMarketCap, Tether Gold is currently priced at $1,854.97, marking a 0.70% increase, with a 24-hour trading volume of $3,575,013. Monero is trading at $154.29, reflecting a 0.27% gain, with a trading volume of $57,030,491. Similarly, PAX Gold has seen a marginal increase of 0.05%, reaching a price of $1,857.94, and a trading volume of $11,280,075.
Why It Matters: On Monday, the price of gold experienced a substantial surge of 1.7% as financial markets prepared for potential challenges and increased volatility following the Israel-Palestine conflict.
At the time of writing, Gold COMEX December 2023 futures were trading 0.6% higher at $1,875.10, while spot gold remained largely unchanged at $1,861.39.
Investors have turned to gold as a safe-haven asset in response to the newly emerged geopolitical risks. Ed Moya, a senior market analyst at OANDA, observed, “Gold prices are rising due to a new geopolitical risk that has investors seeking safe havens, especially on a day when the US bond market is closed.”
