What You Should Know:
- Gold-backed cryptocurrencies like PAXG and XAUT decreased by 1% over the last week as gold prices fell.
- In contrast, the broader crypto market rose, with the CoinDesk 20 Index showing a 5.7% increase during the same timeframe.
- Wall Street analysts remain optimistic about gold, projecting price targets as high as $3,000 per ounce.
Gold-backed cryptocurrencies have not fared well recently, following a drop in the price of gold after a notable increase earlier this year. The decline coincided with rumors that tariffs proposed by U.S. President Donald Trump were merely strategies for negotiation.
Tokens such as Paxos gold (PAXG) and Tether gold (XAUT) have dropped approximately 1% to around $2,900, while the overall crypto market has experienced a positive trend. The CoinDesk 20 Index increased 5.7%, and the MarketVector Digital Assets 100 Index improved by 3.4% over the same duration.
The decrease in gold prices is largely attributed to growing speculation around potential tariffs from the U.S., which are believed to be intended for negotiations rather than immediate implementation.
A Morgan Stanley report suggests that this dip offers a chance for investors seeking hedges against inflation and global uncertainties. Reports indicate that renowned financial institutions have recently updated their gold price expectations, which could bolster the values of gold-backed digital assets linked to stored bullion.
Citi has increased its short-term price target for gold to $3,000, while UBS has established a 12-month target of $3,000 per ounce.
