Tether has dismissed two senior precious-metals traders it hired from HSBC only three months earlier, a person with direct knowledge of the situation said. The workforce reductions occurred as spot gold prices plunged, registering their steepest monthly fall since 2008 amid weakening expectations for rate cuts and rising energy costs linked to the war in Iran.
The company, headquartered in El Salvador, cut the two roles this month, the source said. One of the former traders has updated a professional profile to indicate the change, marking the position as "layoff/position eliminated." Tether did not respond to a request for comment.
On its balance sheet, Tether held roughly 130 metric tons of physical gold backing its products as of the end of 2025. Chief Executive Officer Paolo Ardoino said in January that the company also planned to allocate 10% to 15% of its own investment portfolio to physical gold.
Precious metals markets have seen extreme swings this year. After surging 64% in 2025 and drawing in new buyers including Tether, bullion climbed to a record $5,595 per troy ounce in January amid speculative demand. Since that peak, gold has retreated about 18% and was down roughly 13% so far in March at $4,579 per troy ounce, with trading described as highly volatile.
The personnel reductions at Tether come while the wider gold market adjusts to changing macroeconomic expectations and energy-related cost pressures that have contributed to rapid price movements. The companys prior public commentary on increasing gold allocations and its existing physical holdings underscore its active exposure to the bullion market.
Details about the precise trading activities of the departed staff, and whether additional changes to Tethers precious-metals operations are planned, were not provided by the source. The available information is limited to the timing of the hires three months ago and the subsequent eliminations of the roles this month.
Clear summary: Two senior precious-metals traders hired by Tether from HSBC three months ago have been let go as spot gold prices fell sharply; Tether holds about 130 metric tons of physical gold and had signalled a plan to allocate 10% 6% of its investment portfolio to physical gold.
Key points:
- Tether cut two senior precious-metals trading roles hired from HSBC three months prior.
- Spot gold experienced its steepest monthly drop since 2008 amid fading rate-cut expectations and rising energy costs tied to the war in Iran.
- Tether had about 130 metric tons of physical gold backing its products at end-2025 and indicated a planned 10% 15% allocation of its own portfolio to physical gold.
Risks and uncertainties:
- Continued high volatility in gold prices could affect firms and investors exposed to bullion, including entities holding physical metal for product backing.
- Macro developments - notably shifts in interest-rate expectations - may alter demand for gold and influence trading operations and staffing needs in the precious-metals sector.
- Rising energy costs associated with the war in Iran present an additional uncertainty for markets, contributing to price instability in commodities.