Analysis: PAXG and other gold-backed tokens performed poorly this week, while Wall Street raised its gold price target

ChainCatcher news, according to CoinDesk, this week, gold-backed cryptocurrencies performed poorly as their prices fell sharply after rising more than 10% so far this year.

Gold-backed tokens, including Paxos gold (PAXG) and Tether gold (XAUT), dropped about 1% over the past week, trading at around $2,900, while the overall cryptocurrency market saw a rebound. The CoinDesk 20 index rose 5.7% during the same period, and the broader MarketVector Digital Assets 100 index (MVDA) increased by 3.4%.

Analysts pointed out that as more people speculate that Trump's threatened new tariffs are merely a negotiating tool, gold prices have declined, impacting the prices of safe-haven assets including gold and the dollar.

However, according to a recent report from Morgan Stanley, the recent drop in gold may still provide an "opportunity" for those seeking a hedge against the backdrop of global reflation, geopolitical tensions, and increasing fiscal spending. They recently raised their forecast for gold prices.

Citi strategists recently raised their short-term gold price target to $3,000 and increased their average forecast for this year to $2,900. Meanwhile, UBS has raised its 12-month gold target to $3,000 per ounce.