- Journalist Happy Coin News Yuri Saveliev described a strategy for trading gold-backed stablecoins.
- He provided data on the results of using this tactic for buying and selling tokens.
- The author outlined the strengths and weaknesses of the tokenized gold earning scheme.
In 2026, precious metals prices are subject to high volatility by market standards, which opens up significant profit opportunities. So, I decided to share this with my readers. Happy Coin News with its tokenized gold trading strategy.
How did the idea to develop a strategy for making money on gold stablecoins come about?
I’ve been trading Bitcoin and Ethereum with varying success since 2018, trading erratically and often driven by my emotions. In the spring of 2022, I suffered losses selling ETH during the dump, preferring to lock in the losses rather than wait for the next bull run. This loss discouraged me from taking risks, so I started earning passive income by locking up dollar-pegged stablecoins, which yielded up to 25% per annum when the crypto market’s upward movement accelerated and traders actively borrowed coins.
The Ethereum price crash in spring 2022, which sent me into the red
However, the depreciation of the US dollar against the ruble, observed since September 2023, has devalued long-term investments in dollar-based virtual currencies. Therefore, the question arose of finding another asset with greater potential, if we look long-term. My choice fell on gold, which has been in use since 1972. became more expensive by an average of 8,3% per year against US fiat currency. In 2025, I created my personal pension fund and replenished it with gold stablecoins three times: in June, when the precious metal was worth around $3,300, in October at a cost of around $4,100 and in January 2026 at a rate of around $4,900.
While monitoring the dynamics of XAU price changes in order to choose the optimal moment to buy digital assets, I noticed certain patterns that formed the basis of my strategy, suitable for trading both physical and tokenized gold, for example, Tether Gold (XAUt) and PAX Gold (PAXG), leading in rating gold stablecoins by capitalization.
Change in the value of issued tokens based on XAU
What is the trading strategy for XAU-based tokens?
My strategy for making money on tokenized gold is swing trading and involves:
- Buying coins when the RSI index is in the oversold zone, falling below 30 on the daily XAU price chart if the market is bearish, or in the neutral zone at 50 in a bullish market;
- Selling assets when the RSI reaches the neutral zone during a bearish market or the overbought zone when the index value exceeds 70 if a bullish trend prevails.
The prevailing market trend can be judged by the 800-hour exponential moving average (EMA-800). If the price fluctuates above this line, the trend is predominantly up, while if it fluctuates below this line, the trend is predominantly down. You can see the EMA-800 on TradingView by adding the Forflies Exponential Moving Average Ribbon indicator to the chart, for example, which I use.
EMA-800 on the XAU chart (blue line)
I admit that after the RSI crosses its thresholds (30, 50, and 70), the price of gold may continue to fall or, conversely, rise. This is clearly demonstrated by the situation observed in the fall of 2023, when the XAU price fell by 3,49% after the index had already entered oversold territory. This means that you could have made more profit by waiting until the RSI fell well below 30. However, a mistake would have cost you a significant portion of your profit, so I believe it’s best to take a conservative approach and play it safe.
RSI Index and XAU Price Decline
What were the results of using the tokenized gold trading strategy?
On March 20th, after seeing headlines about gold falling at a multi-decade low, I realized it was time to stock up on stablecoins. On March 23rd, I opened limit buy orders for PAXG at $4,050, reasoning that the RSI would enter oversold territory if the asset’s price fell to that level. About an hour later, I started monitoring the XAU price in real time and saw it bounce back from $4,100 and then sharply rise. So, I decided to cancel my orders and bought the coins at the market price of $4,259.
Transactions related to the purchase of PAX Gold
After that, I waited for the RSI to rise to 50 and assumed the index would reach that level when the gold price reached $4,790. I opened a limit order to sell PAXG at that price, but on the evening of April 1st, I cancelled it and decided to manually execute the trade, hoping the precious metal would break even and earn a larger profit. That’s exactly what happened: XAU rose to $4,800, fell short of the 800 EMA, and began to decline. I sold my stablecoins at $4,770 because they hadn’t gained as much. Thus, in nine days, I managed to make a 12% profit.
PAXG sell orders
Trades on the gold price chart
What are the advantages and disadvantages of this tactic?
The disadvantages of the trading strategy include the following factors:
- Possible loss of part of the profit due to making transactions near the boundaries of the oversold and overbought zones, as well as the neutral area;
- A long wait for the right moment to enter the market, which can last two to three months.
These shortcomings are offset by the advantages of the strategy, which include:
- Minimal risk;
- Low labor intensity.
Gold is forgiving, which is why I call it a merciful asset. If you buy XAU-based stablecoins in the oversold zone during a bearish trend or in the neutral zone when the uptrend prevails, and their price continues to decline, there’s a high chance you’ll still end up in the black if you wait a few days or weeks.
Furthermore, following my scheme, all trades can be executed using limit orders, taking just a few minutes. Moreover, chart analysis requires little effort, as you only need to pay attention to two indicators (RSI and EMA-800) on two timeframes (four hours and 24 hours).
What are the specifics of trading XAU-based stablecoins?
In my experience, I’ve noticed some specific aspects of trading in the tokenized gold market that are essential to consider. These include the following:
- Technical indicators should be monitored on the gold chart rather than stablecoins, as it more accurately reflects the current market situation, probably due to higher liquidity;
- The price of tokens changes with a delay, due to which the bottoms are located $20-30 higher, and the peaks are $20-30 lower, which forces limit orders to be placed at higher or lower marks, for example, $4,770 instead of $4,800;
- By storing stablecoins before selling them, you can earn additional income, for example, bybit accrues 11% per annum for blocking XAUt.
I plan to update this article as I make new trades and come up with ideas for improving my strategy. So, if you’re interested in trading tokenized gold, you can follow my progress.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/