Gold's Safe-Haven Rally Spills Into Crypto Markets

Physical gold prices climbed to a one-month high as safe-haven demand surged following US and Israeli strikes on Iran. On March 2 gold rose 2%, peaking at $5,394 per ounce before settling at $5,363.7, and has gained roughly 65% so far in 2025. The move into bullion is spilling into digital markets: on-chain data shows a rise in tokenized gold accumulation as crypto investors seek to preserve exposure to the metal without relying on traditional finance rails.

The tokenized-gold sector’s market capitalization has topped $6 billion, and CoinGecko data showed daily trading volumes for XAUT and PAXG each surpassed $1 billion yesterday. Several large purchases highlighted the trend. Analytics firm Lookonchain flagged an inactive wallet, 0x1C70, that spent $1 million USDC to buy PAXG and XAUT, performed multiple swaps and still holds $4 million USDC.

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