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Tether Gold Price Forecast: XAUt Eyes $4200 as Global Markets Uncertainty Grows

Highlights:

  • Tether Gold is trending towards the October 13 all-time high of $4187.9
  • Rally through $4187.9 could push XAUt to $4200
  • Rising uncertainties are driving the XAUt momentum

Tether Gold (XAUt) is one of the few cryptocurrencies still in the green today. At the time of writing, Tether Gold was trading at $4,150.20, representing a 1.7% increase from its previous value. Tether Gold trading volumes are also up in the day. They have shot up by 107.98% to stand at $300.7 million. This is an indicator that money is flowing strongly into Tether Gold, suggesting the price could rise significantly in the short to medium term. There are several factors that could drive Tether Gold higher in the future, potentially sustaining the ongoing FOMO in the short term.

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Prolonged US Government Shutdown Pushing Tether Gold Higher

One of them is the ongoing US government shutdown. The shutdown is now in its 3rd week, and the U.S. Treasury Secretary has said that it is starting to have a tangible impact on the real economy. This is pushing capital into safe-haven assets, such as gold, as investors take a wait-and-see approach to the world’s largest economy.

The shutdown has raised prospects that the Federal Reserve could be about to cut rates. This would make it much cheaper to hold non-yielding assets such as Gold. These two factors, collectively, are likely to continue pushing to make new all-time highs from time to time going into the foreseeable future.

Expansion of Trade War to Shipping Makes Case for XAUt Stronger

XAUt is also pushing higher because the trade war is taking a turn that could have significant impacts on the global economy. Today, October 14, China has begun charging port fees on all US-flagged and US-owned ships, a reciprocal measure in response to a similar action taken by the US. This move could significantly alter global trade dynamics and potentially slow down the world economy, triggering a global recession.

Such risks are making holding XAUt increasingly attractive, further adding to the current price momentum and possibly leading to rallies to new highs in the short to medium term. 

Central Banks Accumulating XAUt Could Push Price Higher

XAUt is also benefiting from the rising accumulation by Central Banks. The increasing uncertainties due to geopolitics have triggered fears of risks to fiat currencies worldwide. This has seen central banks from all over the globe start accumulating Gold in their reserves. As this accumulation arises from a need to hedge against currency risks, the odds are high that the price of XAUt will continue to rise.

Tokenized Gold Versions Like Tether Gold Helping Drive Retail Demand

At the same time, both retail and institutional money now have increasingly easier access to Gold than ever before. Through Gold ETFs, money seeking safety in a world operating at maximum uncertainty continues to pile into Gold. At the same time, tokenized versions of Gold, such as Tether Gold, have made it easier for the billions of dollars seeking safety from cryptocurrency volatility to get a mix of safety and growth.

All this demand, driven by ease of access, could continue to push XAUt to new highs in the foreseeable future. Some analysts are already predicting that Gold could reach prices above $5,000 before the end of the year.

Technical Analysis – Tether Gold Approaches A Retest of All-Time Highs

Yesterday, October 13, Tether Gold reached a new all-time high of $4,187.9. However, there has been a slight correction intraday mainly due to profit-taking. However, the price of Gold has found support at $4,118.4 in the day and bounced off it.

XauT
Source: TradingView

This is a signal that if bulls remain in control, XAUt could be headed for a retest and potential breach of the $4,187.9 all-time high. If bulls take control and push XAUt to the $4,187.9 all-time high, then a rally to $4,200 could follow in the short term.

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