Tether, the company behind the USDT stablecoin, purchased more than 27 metric tons of gold in the first half of 2026, placing it on par with Kazakhstan's central bank and behind only Poland, Uzbekistan, and China among the world's major gold buyers this year.

The purchasing reflects motives similar to those driving central banks: diversifying reserves and hedging against inflation and dollar weakness. Since USDT is pegged to the U.S. dollar, a weaker dollar poses a direct concern for Tether's reserve position. As the largest stablecoin by market capitalization, USDT functions as a primary source of liquidity across cryptocurrency exchanges worldwide, meaning shifts in the composition of its backing reserves carry significance well beyond the company itself.

🔥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👇

— Global Markets Investor (@GlobalMktObserv) August 12, 2026

Analysts at Jefferies say Tether's purchases have likely contributed to pushing gold higher this summer. Gold currently trades around $4,420 an ounce, up approximately 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. Central banks themselves have been on a multi-year gold-buying streak, with net official-sector purchases reaching record levels in recent years — a trend that accelerated after the freezing of Russian central bank reserves in 2022 underscored the political risks of holding foreign exchange in currencies subject to Western sanctions.

Tether also issues Tether Gold, a tokenized version of gold that converts ownership of physical gold into digital rights recorded on a blockchain. The company's second-quarter Tether Gold holdings rose 9.5% from the first quarter.

Tether CEO Paolo Ardoino said buyers are not simply purchasing the token when prices rise. He said they are using market dips to build their positions 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 release could shape the Federal Reserve's next move on interest rates.

Swaps markets currently price the odds of a quarter-point September rate hike at approximately 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 as the next major target.

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 providing support for gold. Iran has stated the waterway will remain 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 consecutive month in July, purchasing approximately 640,000 troy ounces and bringing total holdings to 76.08 million ounces. Chinese gold-backed ETFs also continued to attract buyers. That sustained accumulation fits a broader pattern among emerging-market central banks, which have collectively been the largest drivers of global gold demand growth in recent years.

Tether's gold purchases have continued even as cryptocurrencies have sold off, with Bitcoin down more than 25% year to date and Ethereum and Solana each down nearly 40%.

Producer price data is scheduled for release on Thursday, giving markets another inflation reading ahead of the Fed's next meeting.