Analysis: Gold-backed tokens like PAXG underperform this week while Wall Street raises gold price target

this week, gold-backed cryptocurrencies performed poorly, as their prices fell sharply after rising more than 10% so far this year. Gold-backed tokens including Paxos Gold (PAXG) and Tether Gold (XAUT) fell by about 1% in the past week, trading at around $2,900, while the overall cryptocurrency market rebounded. The CoinDesk 20 Index rose by 5.7% during the same period, and the broader MarketVector Digital Asset 100 Index (MVDA) rose by 3.4%.

Analysis indicates that as more people speculate that Trump's threat of new tariffs is just a negotiating tool, gold prices have fallen, impacting safe-haven assets including gold and the US dollar. However, according to a recent report by Morgan Stanley, in the context of global currency re-inflation, geopolitical tensions, and increasing fiscal spending, the recent decline in gold prices may still provide an "opportunity" for those seeking hedging. The firm recently raised its forecast for gold prices.

Citigroup strategists recently raised their short-term gold price target to $3,000 and raised their average forecast for the year to $2,900. Meanwhile, UBS has raised its 12-month gold target to $3,000 per ounce.

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