Gold-Backed Tokens See Lackluster Performance Amid Wall Street’s Dip-Buying Advice on Precious Metal.

Gold-Backed Tokens Struggle as Gold Price Declines Amid Tariff Speculation; Wall Street Optimistic for Rebound

Gold-backed cryptocurrencies have faced challenges this week, with the price of gold pulling back after a strong surge earlier in the year. The precious metal, which had gained over 10% in 2025, experienced a dip as speculation mounted around President Trump’s new proposed tariffs, viewed by some as a tactical negotiating tool rather than a permanent policy shift.

Tokens tied to gold, such as Paxos Gold (PAXG) and Tether Gold (XAUT), saw a slight decline of around 1% over the week, trading near $2,900, while the broader cryptocurrency market experienced a rally. The CoinDesk 20 Index saw an increase of 5.7%, and the MarketVector Digital Assets 100 Index (MVDA) rose 3.4% during the same period.

The drop in gold’s price came amidst rising speculation that Trump’s reciprocal tariffs, which are designed to mirror tariffs imposed by other countries on U.S. imports, are primarily a strategic move for future trade negotiations. The uncertainty surrounding these tariffs negatively impacted traditional safe-haven assets, including gold and the U.S. dollar.

Despite the short-term drop, Wall Street analysts remain optimistic about the long-term outlook for gold. A recent report from Morgan Stanley suggests that the recent dip may present a buying opportunity for those seeking hedges against inflation, geopolitical tensions, and global fiscal spending.

Citi has revised its short-term gold price target upwards to $3,000, while UBS has increased its 12-month gold forecast to the same price. With these bullish forecasts for gold, analysts anticipate that gold-backed tokens could see renewed growth as the market stabilizes and the value of the precious metal rebounds.