PAX Gold Surges Amid a Parabolic Gold Rally

The tokenized gold asset PAX Gold (PAXG) has continued its upward trajectory, closing the day at $4,912.70 on 29 January 2026. With a 52‑week high of $5,622.81 reached just a day earlier and a 52‑week low of $2,775.83 recorded in February 2025, the market cap remains solid at $2.14 billion.

On‑Chain Momentum and Institutional Demand

Solana’s perpetual‑contract platform Pacifica has reported active trading in on‑chain gold contracts, with PAXG ranking eighth in trading volume on the platform. The combined 24‑hour volume for XAU and PAXG accounted for 9.36 % of all trading, amounting to approximately $8.71 million. This activity signals growing confidence among traders that favor the efficiency and transparency of blockchain‑backed assets.

Tokenized gold has also experienced an unprecedented surge in on‑chain transactions. CryptoQuant data shows that transaction counts for PAXG and XAUT reached record highs as spot gold prices accelerated toward the $5,500 threshold. This uptick in activity underscores the alignment between physical gold’s rally and its digital counterparts.

Macro‑Geopolitical Tailwinds

El Salvador’s Central Reserve Bank (BCR) has recently acquired $50 million worth of gold, adding 9,298 troy ounces to its holdings. This purchase, the second since 1990, brings the country’s total gold reserves to 67,403 troy ounces. The move reflects a broader trend of sovereign entities bolstering gold positions amid rising macro‑economic uncertainty and geopolitical tensions, thereby driving demand for both physical and tokenized gold.

Market Context and Forward Outlook

Gold’s price has risen nearly 20 % year‑to‑date, positioning the metal as a safe‑haven amid volatility in traditional markets. As a 1:1 backed token, PAXG offers investors immediate exposure to gold without the logistical burdens of storage and insurance. The confluence of robust on‑chain activity, institutional purchases, and macro‑safe‑haven flows suggests that PAXG is likely to maintain its momentum in the short‑term, potentially approaching the recent 52‑week high.

Analysts anticipate that the continued alignment of on‑chain volume and physical gold purchases will sustain demand for tokenized gold, keeping PAXG on an upward trajectory as the broader market seeks liquidity and stability in the crypto‑asset ecosystem.