Gold-Backed Tokens Positioned to Thrive as Wall Street Embraces Bullish Trends Following a Record Surge

Overview

Major financial institutions are elevating their forecasts for gold prices amid escalating trade tensions and increased purchases by central banks. This week, both Citi and UBS have raised their outlooks on gold, expecting further bullish performance as market pressures persist.

Key Points:

Institutions like Citi and UBS predict higher gold prices due to trade uncertainties and official sector demand.
Gold-backed cryptocurrencies, such as PAXG and XAUT, have outperformed the crypto market, benefiting from rising gold prices.

This week, Citi revised its short-term gold target to $3,000 per ounce, increasing its annual forecast to $2,900 from $2,800. These changes reflect not just trade concerns but also worries about global growth that are likely to bolster demand for gold.

In contrast, UBS raised its 12-month gold price target to $3,000, forecasting a continued bullish trend. The precious metal has recently surpassed $2,860, having risen about 9% this year.

UBS’s strategists highlighted gold’s longstanding role as a store of value in uncertain times, while Citi pointed to the diversification trend among reserves and increasing demand for gold from emerging market sectors.