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bitcoin
Bitcoin (BITCOIN)
$105,005 -2.01%
ethereum
Ethereum (ETHEREUM)
$2,548 -6.96%
binancecoin
BNB (BINANCECOIN)
$652.27 -1.60%
solana
Solana (SOLANA)
$145.48 -8.34%
ripple
XRP (RIPPLE)
$2.15 -3.51%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000012 -6.78%
pepe
Pepe (PEPE)
$0.000011 -12.43%
bonk
Bonk (BONK)
$0.000014 -11.10%
bitcoin
Bitcoin (BITCOIN)
$105,005 -2.01%
ethereum
Ethereum (ETHEREUM)
$2,548 -6.96%
binancecoin
BNB (BINANCECOIN)
$652.27 -1.60%
solana
Solana (SOLANA)
$145.48 -8.34%
ripple
XRP (RIPPLE)
$2.15 -3.51%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000012 -6.78%
pepe
Pepe (PEPE)
$0.000011 -12.43%
bonk
Bonk (BONK)
$0.000014 -11.10%
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Tether Gold Price Forecast – Why XAUt Could Soon Rally to $4000

Highlights:

  • Tether Gold has breached critical resistance and is headed to $3400
  • Ongoing rally puts $4000 within reach in the short term
  • Rising economic and geopolitical uncertainties make gold attractive to investors

Tether Gold (XAUt) is in the green today, standing out from the sea of red across the cryptocurrency market. Tether Gold was trading at $3378.72 when going to press, up by 1.42% in the day. This reflects the relatively strong year that Bitcoin has had so far.

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Tether gold trading volumes are also up strongly in the day, at $28.77 million, up by 99.40% in the last 24 hours. Such a surge in volumes amid rising prices indicates that demand for Tether Gold is growing, which means the price could be higher in the short to medium term. A couple of factors could boost Tether Gold’s price in the future. 

Rising Uncertainty Boosts Tether Gold Demand

One of them is the rising uncertainty across the globe. The world is currently in a state of maximum uncertainty. On the one hand, the world has yet to fully price the impact of the tariffs that started in April. The US and China, two of the world’s largest economies, have yet to develop a clear deal on how to co-exist in the global economy. Then there are the military tensions across the globe. The latest of these is tensions between the US and Iran.

All these have seen risk-off asses become increasingly attractive to investors. Given that gold has a proven history as a reliable asset to hold in times of uncertainty, its price has responded positively to these uncertainties. With the latest flare-up in tensions between the US and Iran, the odds are high that global uncertainty will not go away anytime soon. This could mean Tether Gold will likely remain green, even as other cryptocurrencies turn bearish as capital flows away from risk. 

Rising Risk of Inflation Likely to Drive Tether Gold Higher

Tether Gold is also likely to get a boost because sovereign debt is getting out of control worldwide. The US is passing a bill that could remove the debt ceiling and lead to more long-term inflation. The implication is that the dollar will likely lose value in the long term. Investors who seek to beat inflation are likely to flock more into gold. That’s because gold and the dollar have an inverse relationship. As such, Tether Gold could see its price increase in the long term, likely outperforming most cryptocurrencies.

Ease of Access Makes Tether Gold Attractive to Investors

Tether Gold is also likely to benefit because the average investor cannot easily access physical gold. Also, trading gold CFDs carries excessive risk due to leverage trading. This makes tokenized versions of gold, such as Tether Gold, increasingly attractive to investors. Tether Gold may appear attractive because it is backed by more than 50 tons of physical gold that Tether holds. This ease of access and backing by real gold could increase its price as investors seek to protect value in times of uncertainty.

Technical Analysis – Tether Gold Rallies Through Resistance

From the charts, gold has rallied through the $3374.6 resistance with high volumes. If the current momentum continues, Gold could be headed to $4000 in the short term. However, if bulls lose short-term momentum, two scenarios could play out.

Tether Gold
Source: TradingView

The first is a possible consolidation of around $3374.6, which is now supported. In the second scenario, bears take control and push Gold through the $3374.6 price level. In such a scenario, Gold could drop to around $3345.5, which is a more solid support level in the short term. However, with the momentum Gold has built up so far, and the rising uncertainty in the geopolitical space, a rally to $4000 seems more likely.

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