Odaily News The gold-backed cryptocurrency has underperformed this week as its price has fallen sharply after rising more than 10% so far this year.
Gold-backed tokens including Paxos gold (PAXG) and Tether gold (XAUT) are down about 1% over the past week, trading around $2,900, while the overall cryptocurrency market has rebounded. The CoinDesk 20 Index is up 5.7% over the same period, while the broader MarketVector Digital Assets 100 Index (MVDA) is up 3.4%.
Analysts pointed out that as more and more people speculated that the new tariffs threatened by Trump were just a negotiating tool, gold prices fell, hitting the prices of safe-haven assets including gold and the US dollar.
Still, gold’s recent decline could provide “opportunities” for those seeking a hedge against a backdrop of global reflation, geopolitical tensions and rising fiscal spending, according to a recent report from Morgan Stanley, which recently raised its gold price forecast.
Citi strategists recently raised their short-term gold price target to $3,000 and their average forecast for this year to $2,900. Meanwhile, UBS has raised its 12-month gold target to $3,000 an ounce. (CoinDesk)