Maybe everyone was overthinking it. Maybe gold went up because Tether has been buying.
It's not news that Tether likes gold. The world’s largest stablecoin issuer has spent more than $300mn this year buying stakes in precious metals producers, CEO Paolo Ardoino having talked about “natural bitcoin” as a way to diversify reserves. Tether also issues the XAUt token, launched in 2020, which is advertised as being backed by bullion held in a Swiss vault.
Based on the 116 tonnes of gold indicated in its end-September reserves attestation, Tether is “the largest holder of gold outside central banks”, Jefferies writes. The vault’s now “roughly equal to smaller central banks, such as Korea, Hungary, and Greece”.
Tether wants to become another BlackRock? All of its activities suggesting the same. Or maybe they got on the Golden train for they knew what was coming.