Markets
Gold's Slide Deepens as PAXG Drops Below $4,200 for the First Time Since Early August
Tokenized gold fell 1.5% in the first hours of Monday to below $4,200, about 10.5% under its August 25 peak. Every rally for a month has stopped lower than the one before.
Gold has started the week lower. PAXG, the Paxos token backed by physical gold, spent a quiet weekend between about $4,256 and $4,285, then slipped below $4,200 by 05:00 UTC on Monday — about 1.5% under Sunday's close and its lowest price since August 5.
The decline has been building for a month. PAXG peaked at $4,689 on August 25, and every rally since has stopped lower: $4,512 on September 3, $4,398 on September 18, $4,375 on September 21. Monday's price is roughly 10.5% below the August high. It has been a grind rather than a break — no single hour in September moved more than about 2.1% — and that is exactly why it has been easy to overlook.
The weekend pattern is typical of an asset whose main market closes. PAXG trades around the clock, but with the London and New York gold markets shut, its weekend volume over the past two months averaged just over a quarter of its weekday level, and the price tends to wait for the main market to reopen before it moves. This time it moved down. The backdrop hasn't helped: EUR/USD is at about 1.139, close to last week's low of 1.1362, and a firm dollar often weighs on gold priced in dollars. We've added September's slide as a Historical Replay.