Cryptocurrencies supported by gold is underpinned during the week as the price of precious metal experienced a significant fall after moving more than 10% so far this year. The fall came as speculation about Trump’s tariffs as a negotiating tool.
Gold -supported tokens, including Paxos Gold (PAXG) and Tether Gold (Xaut), have fallen approx. 1% over the past week to trade about $ 2,900 while the wider crypto market stood together. Coindesk 20 index increased 5.7% over the same period, and the wider market vector digital assets 100 index (MVDA) increased 3.4%.
The noble metal saw its price drop in the midst of growing speculation that the new tariffs threatened by US President Donald Trump are meant to be a negotiating tool. This hit the price of secure-port assets, including the item and the US dollar.
Trump announced that mutual tariffs were on the table to match the customs imposed by other countries on US imports. Mutual tariffs could take months to implement, leading to speculation, which these are intended to allow the United States to negotiate with other countries.
According to a recent Morgan Stanley report, Gold’s recent dip could still provide an “opportunity for those looking for hedges” in the middle of global reflection, geopolitical tensions and growing tax expenses. Wall Street giants have recently raised their gold price forecasts, which would also help the price of gold-supported digital assets to rise as these are supported by gold stored in vaults.
Citi strategies recently raised their short-term gold price targets to $ 3,000 and their average forecast for the year to $ 2,900. Meanwhile, UBS has wandered his 12-month gold goal to $ 3,000 per day. Ounce.
