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Gold-backed Tokens Underperform While Wall Street Calls for Dip Buying in Precious Metal

Gold-backed Tokens Underperform While Wall Street Calls for Dip Buying in Precious Metal
Gold-backed cryptocurrencies, including Paxos gold (PAXG) and Tether gold (XAUT), have declined approximately 1% over the past week as the price of gold dropped due to speculation surrounding Trump's tariffs being a negotiating tool. The broader crypto market, on the other hand, saw a rally. Despite the drop in gold prices, some analysts believe it presents an opportunity for those seeking hedges amid global reflation and geopolitical tensions. Wall Street giants have also raised their gold price forecasts, potentially boosting the value of gold-backed digital assets. Citi strategists have increased their short-term gold price target to $3,000, while UBS has raised its 12-month gold target to $3,000 per ounce.

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