Gold’s Safe-Haven Rally Spills Into Crypto Markets: Here’s How

beincrypto.com 3 h

Analytics

Physical gold prices climbed to their highest level in a month as safe-haven demand spiked amid escalating geopolitical tensions.

At the same time, the move into bullion is spilling into digital markets. On-chain data shows a surge in the accumulation of tokenized gold assets.

Gold Prices Advance as Investors Seek Safety

Gold rose 2% on March 2, reaching an intraday high of $5,394 per ounce, its highest level since January 30. At press time, the price had adjusted to $5,363.7.

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Gold Price on March 2. Source: TradingView

The catalyst was direct: US and Israeli strikes on Iran sparked safe-haven flows into precious metals across global markets. Monday’s flare-up injected additional momentum into the precious metal’s broader rally. Gold has delivered notable returns, rising approximately 65% in 2025 alone.

For crypto participants, the timing mattered. With digital asset markets simultaneously experiencing renewed volatility, tokenized gold offered a path to preserve gold exposure without relying on traditional finance rails.

Major Purchases Highlight Tokenized Gold Demand

On-chain analytics firm Lookonchain identified an inactive wallet that spent $1 million $USDC to buy PAX Gold ($PAXG) and Tether Gold (XAUT) tokens. The address, labeled 0x1C70, performed multiple swaps over several hours and still holds $4 million $USDC.

“The wallet still holds 4M $USDC and may buy more,” Lookonchain said.

Additionally, an Ethereum whale rotated holdings from $ETH into XAUT while accepting a realized loss. OnchainLens reported that the wallet (0x744b) swapped 1,000 $ETH, valued at $1.94 million, for 358.49 XAUT at $5,413, incurring a loss of over $60,000.

“Over the past 2 years, the whale received 1,645 $ETH for $3.26 million and still holds 645 $ETH ($1.25 million),” the post read.

Meanwhile, London-based asset manager Abraxas Capital Management’s gold holdings also rose. An on-chain analyst, citing data from blockchain intelligence platform Arkham Intelligence, reported that the firm received 28,723 XAUT tokens, valued at $151 million, from Tether’s treasury. The transfer marked the largest XAUT transaction recorded in the past three weeks.

“Interesting fact: Heka Funds (Abraxas Capital) is one of Tether’s largest and most important institutional clients. At one point, it held 1.5% of the total USDT supply. Among Tether’s publicly disclosed on-chain address clusters, it currently ranks as the second-largest entity by interaction volume,” the analyst added.

The increase in tokenized gold accumulation corresponds with greater interest in alternative stores of value within crypto. Investors may favor gold-backed tokens for price stability and potential gains linked to metals markets, while risking less from the volatility typical of many digital assets.

BeInCrypto recently reported that the tokenized gold sector has recorded significant expansion, with its market capitalization now exceeding $6 billion. Furthermore, according to CoinGecko, daily trading volumes for both XAUT and $PAXG surpassed $1 billion yesterday, signaling strong investor demand.

Whether this is a temporary flight to safety or marks a sustained move toward commodity-backed digital tokens remains a question as March 2026 progresses and more on-chain data emerges.