Analysis: Gold-backed tokens such as PAXG underperformed this week, while Wall Street raised its gold price target

Gold-backed cryptocurrencies have underperformed this week as their prices have fallen sharply after rising more than 10% year-to-date. Gold-backed tokens, including Paxos gold (PAXG) and Tether gold (XAUT), have fallen about 1% over the past week and are trading around $2,900, while the overall cryptocurrency market has rallied. The CoinDesk 20 index is up 5.7% over the same period and the broader MarketVector Digital Asset 100 Index (MVDA) is up 3.4%.
The fall in gold prices has hit safe-haven assets including gold and the dollar as speculation grows that Mr. Trump's threatened new tariffs are merely a negotiating tool. However, the recent fall in gold could still provide an "opportunity" for those looking to 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 forecast for gold prices.
Citi strategists recently raised their short-term gold price target to $3,000 and their average forecast for the year to $2,900, while UBS has raised its 12-month gold target to $3,000 an ounce.