Gold Surges Past US$4,200 as Tether’s $200 Million Bet Bridges Bullion and Blockchain

By Peter Kennedy

Gold is likely to remain a strong hedge against economic and political uncertainty, even after hitting another record high at over US$4,200 an ounce on October 15, 2025, analysts say.

The price of bullion is up 54% so far this year, a stunning increase that comes as no surprise to Maison Placements Canada Inc. President and CEO John Ing. The Toronto-based mining analyst predicted back in May 2025, that prices were heading above US$4,000 an ounce. In an interview with Resource World, he said the conditions are ripe for prices to go even higher.

“It’s a function of supply and demand. There isn’t much supply from the mining side and demand has really picked up.”

Ing said he has been around long enough to recall the days when US$100 an ounce was a realistic target.  “You must remember that gold in the early 1970s went from US$35 an ounce to US$850,’’ he said. Then in 2011 it went from US$250 to US$1,900 an ounce. There is no doubt that the ingredients that are propelling gold higher are very much [in play].’’

The rise to just under US$4,200 an ounce has been attributed to a number of factors including U.S.-China trade tensions which could spark a trade war between the world’s leading economies and expectations of a drop in U.S. interest rates. Traders are still pricing in a quarter-point cut this month, which would benefit gold further as it doesn’t pay interest.

The move to safe haven investments, including gold and silver, has also been strongly attributed to uncertainty caused by the economic policies of the Trump Administration.

“The reality is that the best Trump trade is gold,’’ said Ing. “Gold is fungible. It’s a universal asset and an alternative to the U.S. dollar. The only certainty about Mr. Trump is uncertainty. No-one, including Mr. Trump, knows what the next six months look like. The markets just abhor uncertainty. Businesses and companies don’t like it.”

But aside from U.S. economic policy, another factor has entered the equation, particularly since the end of the summer.

A Scotiabank investment report says gold has become a collective hedge against the possible implosion of the AI-driven boom for technology stocks in the U.S.

The report noted that despite a few wobbles, there have been almost endless headlines around record values for such shares, with most investment seen as a big bet on the future rather than current earnings.

AI leaders such as Nvidia Cor. [NVDA-NASDAQ] and companies investing big in their capabilities see huge rewards ahead in terms of both productivity and profits.

But a potential bursting of the AI bubble was seen as enough of a risk for the Bank of England to call it out in its latest financial stability report.

Recently Bank of America and Societe Generale both said they expect gold to reach US$5,000 an ounce in 2026.

That would be welcome news for the companies in the junior exploration sector, which are already benefitting from record high prices, via renewed access to capital.

They include companies like Tudor Gold Corp. [TUD-TSXV, TUC-Frankfurt], which is developing a large discovery in British Columbia’s Golden Triangle region. The Treaty Creek project, which is held 80% by Tudor Gold, hosts a resource of 21.66 million ounces in the indicated category at a grade of 0.92 g/t, plus another 4.88 million ounces of gold in the inferred category at a grade of 1.0 g/t. “We have got this large gold discovery, one of the largest discoveries in recent memory and we need capital to move it forward,” said Tudor Gold CEO Joe Ovsenek. “So with the gold price up and sentiment coming into the industry, you are seeing access to capital improve.”

Forecasts that the gold price will continue to break new records may explain why non-traditional investment is flowing into the gold sector from the crypto currency world. Tether Investments S.A. de C.V., an asset backed stablecoin with holdings in U.S. treasuries, recently agreed to the US$100 million purchase of approximately 75 million shares of Elemental Altus Royalites Corp. [ELE-TSXV, ELEMF-OTCQX] for $1.82 per share.

That is on top of the 78.4 million common shares of Elemental Altus that Tether acquired in June, 2025 for US$105 million or $1.55 per share.

The recent US$100 million placement is in support of Elemental Altus Royalties planned acquisition of EMX Royalty Corp. [EMX-TSX, NYSE American], a move that is designed to create a new mid-tier streaming and royalty company with 16 producing royalties with expected revenue of US$80 million in 2026

“Our investment in Elemental Altus reflects Tether’s expanding commitment to real-world assets that offer stability, scalability and long-term value,’’ said Paolo Ardoino, CEO of Tether Investments.

Analysts have said Tether’s entrance into gold mining investments marks a pivotal moment where digital finance meets traditional asset classes, potentially reshaping capital flows into mining operations and investor exposure to precious metals.

It is worth noting that Tether has implemented a multi-faceted approach to gold investments, which goes beyond holding physical bullion. It also has investments in gold mining and refining operations.