Affected by the new crown epidemic, gold supply exceeds demand, and the supply of stablecoins supported by gold has grown significantly

Affected by the new crown epidemic and market turmoil, in the past few trading days, the price of gold has ushered in a historic rise. Affected by this, the demand for stable coins supported by gold has also experienced similar growth, and the supply of PAX Gold and Tether Gold There has been a substantial increase, and there is currently a shortage of Tether Gold supply, and efforts are being made to find other sources of gold procurement. According to reports, as investors seek safe haven assets, in the past few trading days, the price of gold has ushered in a historic rise, which has caused stable currency products such as Tether Gold to be supported by precious metals. Gold has been falling during Wednesday’s trading session since word came out that the White House and the U.S. Senate reached an agreement on a $ 2 trillion stimulus plan, but the price of gold has still risen 7.5% since closing last Friday. Due to the spread of the coronavirus, border control measures, and suspension of flight routes, the current supply of gold bars is in short supply, exacerbating the upward trend. Affected by this, the demand for stablecoins supported by gold also experienced similar growth. Among them, the supply of PAX Gold has surged from $ 17 million on Saturday to more than $ 22 million in trading volume on Wednesday. At the same time, the supply of Tether Gold has reached $ 50 million. Paxos CEO Charles Cascarilla said, “Due to the surge in interest in PAX Gold, our total supply has increased by about 20% in the past three days.” Sources familiar with the matter said that Tether has encountered gold purchases since the total blockade in Switzerland. trouble. The company is currently working to find other sources of gold to issue more Tether Gold. The company has sent a request for information to a Swiss government agency. Demand for gold has translated into similar demand for gold-related products, including futures and exchange-traded funds (ETFs), such as the SPDR Gold Shares ETF. According to Factset, the weekly trading volume of the product has exceeded $ 100 million in the past month, reaching its highest level in five years. This month’s transaction volume also peaked since 2013.