TLDR
- Tether bought over 27 metric tons of gold in the first half of 2026, matching Kazakhstan’s central bank purchases
- Gold rose 0.7% to around $4,400 an ounce ahead of the U.S. CPI inflation report
- Jefferies analysts say Tether is now “a meaningful source of incremental physical gold demand”
- China’s central bank bought gold for a 21st straight month in July, adding around 640,000 troy ounces
- Gold faces key resistance near $4,460 to $4,495, with $5,000 seen as the next major target if those levels break
Gold is rising, and two of the biggest reasons are a crypto company and the Chinese central bank.
Tether, the company behind the USDT stablecoin, bought more than 27 metric tons of gold in the first half of 2026. That puts it on par with Kazakhstan and behind only Poland, Uzbekistan, and China among major buyers this year.
🔥Tether has quietly become one of the world's largest gold buyers:
Tether's gold reserves have increased by ~85 metric tons since Q1 2025, a larger increase than those of Uzbekistan, China, Brazil, or Kazakhstan.
TAP IMAGE TO SEE FULL INSIGHT👇https://t.co/dt5dUkeNoF
— Global Markets Investor (@GlobalMktObserv) August 12, 2026
Tether is buying gold for the same reasons central banks do. It wants to diversify its reserves and hedge against inflation and dollar weakness. Its stablecoin, USDT, is pegged to the U.S. dollar, so a weaker dollar is a direct concern.
Analysts at Jefferies say Tether’s buying has likely helped push gold higher this summer. Gold now trades around $4,420 an ounce, up about 12% from its low of just under $4,000 at the start of July.
“Tether is no longer a niche participant, but a meaningful source of incremental physical gold demand,” the Jefferies analysts wrote.
Tether also issues a tokenized version of gold called Tether Gold, which converts ownership of physical gold into digital rights on a blockchain. The company’s second-quarter Tether Gold holdings were up 9.5% from the first quarter.
Tether CEO Paolo Ardoino said buyers are not just purchasing the token when prices rise. He said they are using market dips to add to their holdings through a product that is “fully backed, transparent, portable, and accessible on-chain.”
Gold Climbs Ahead of Key U.S. Inflation Data
Spot gold rose 0.7% to around $4,400 an ounce on Wednesday as traders awaited the U.S. Consumer Price Index report. The CPI number could shape what the Federal Reserve does next with interest rates.
Swaps markets currently put the odds of a quarter-point September rate hike at around 50-50. A softer CPI reading could ease pressure on the Fed, while a hotter number could push rate hike expectations higher.
Analysts at Saxo Bank said traders are watching whether gold’s breakout above $4,200 has enough momentum to challenge resistance near $4,460 and the 200-day moving average around $4,495. A break above those levels could open the path toward $5,000.
Gold ETF inflows have extended to a five-session winning streak, pushing total holdings to a six-week high.
Geopolitical Tensions and China’s Steady Buying Add Support
Ongoing tensions around the Strait of Hormuz are adding pressure to energy markets and supporting gold. Iran has said the waterway will stay closed until the U.S. lifts its blockade on Iranian ports. Higher energy prices could push inflation up, which may keep the Fed cautious about cutting rates.
China’s central bank added gold for a 21st straight month in July, bringing total holdings to 76.08 million ounces. Chinese gold-backed ETFs also continued to attract buyers.
Tether is still buying gold even as Bitcoin has fallen more than 25% this year and Ethereum and Solana are each down nearly 40%.
Producer price data is due Thursday, giving markets another inflation reading before the Fed’s next meeting.
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