Gold-backed cryptocurrencies like PAXG and XAUT experienced a 1% decline this past week, coinciding with a notable drop in gold prices despite the broader crypto market rising by 5.7%. This downturn follows a significant increase of over 10% in gold's price earlier this year. Market speculation suggests that U.S. President Trump's proposed reciprocal tariffs are primarily a negotiating strategy rather than an imminent threat, impacting safe-haven assets like gold. Recent reports from Morgan Stanley indicated that gold's price dip may present a hedge opportunity amidst global economic conditions, including inflation and geopolitical tensions. Meanwhile, major Wall Street banks are bullish on gold, with Citi and UBS projecting price targets of $3,000 per ounce. Overall, while gold-backed tokens have underperformed, institutional sentiment remains optimistic about the precious metal's future.

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