Gold-backed Tokens Decline as Wall Street Raises Gold Price Forecasts
Gold-backed cryptocurrencies have seen a decline over the past week due to a significant drop in gold prices, which fell as speculation arose around U.S. tariffs proposed by President Trump. Key points include:
- Gold-backed tokens like PAXG and XAUT dropped about 1% to around $2,900.
- The CoinDesk 20 Index increased by 5.7%, while the MarketVector Digital Assets 100 Index rose by 3.4% during the same period.
- Speculation indicates Trump's tariffs may serve as a negotiating tool, affecting safe-haven assets like gold and the U.S. dollar.
- Gold's recent dip is viewed as a potential buying opportunity amid global economic factors and geopolitical tensions.
- Analysts from Morgan Stanley, Citi, and UBS have raised their gold price targets to between $2,900 and $3,000 per ounce.