Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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The dollar took another step down yesterday after President Trump told reporters that he wanted the US currency to “seek its own level”. The comments made it clear that the current administration is more than comfortable with a softening dollar, signalling to currency markets that the slide may well continue further. The DXY lost 125-bps on Tuesday, pushing the index all the way down to 95.8, a level not seen since February 2022. Traders are on the lookout for any new signs of a joint US-Japan intervention to prop up the yen, but so far nothing more has emerged since the NY Fed conducted rate checks on dollar/yen pair last Friday. Speaking of the Fed, market participants eagerly await the FOMC meeting later today, which will almost certainly hold rates steady. In fact, interest rate traders are not expecting a rate cut until June at the earliest.
The rallies in gold and silver continue unimpeded. For gold, three-figure moves are becoming increasingly common and yesterday was no exception, which saw prices end the day at $5,180 per ounce. Buying pressure remains strong this morning and the precious metal rapidly rose to $5,250 earlier today. It is a similar story for silver, which wasted no time climbing to $115 early on in the Asian session. The rise in precious metals has been contained to gold and silver so far this week, with platinum and palladium instead electing to withdraw from their recent highs.
As to the question of who is buying all up all the gold, an interesting answer made its appearance on Monday, when Tether announced that the company had added 27 tonnes of gold to its holdings in the fourth quarter of 2025. Tether provides the cryptocurrency markets with a number of different stablecoins, the most prominent of which is USDT, which now boasts a market cap of over $180 billion and is partially backed by gold. More relevantly, the company also issues XAUT, which is a tokenised claim on physical gold, granting crypto participants direct access to gold exposure. XAUT now has a market cap of $2.3 billion, meaning Tether is currently rubbing shoulders with some of the largest sovereign holders of gold in the world.
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