Despite Wall Street’s Call for Dip Buying, Gold-Backed Tokens Fail to Perform.

Gold-Backed Tokens Struggle as Gold Price Dips, Wall Street Sees Potential for Rebound

Gold-backed tokens have underperformed in the past week, with the price of gold experiencing a significant drop after a strong rally earlier in 2025. The decrease in gold’s price came amid growing speculation that U.S. President Donald Trump’s newly proposed reciprocal tariffs are more of a negotiating tactic than an actual policy shift.

Tokens like Paxos Gold (PAXG) and Tether Gold (XAUT) saw a slight decline of around 1%, trading close to $2,900. This drop occurred as the broader cryptocurrency market saw gains, with the CoinDesk 20 Index rising by 5.7% and the MarketVector Digital Assets 100 Index (MVDA) increasing by 3.4%.

The dip in gold prices was tied to the growing speculation that Trump’s tariff threats were more about strategic negotiations with other countries than an imminent policy change. This uncertainty led to a drop in the value of safe-haven assets, including gold and the U.S. dollar.

However, some analysts see the recent dip as a potential buying opportunity, with global economic conditions—such as rising inflation, geopolitical tensions, and increasing fiscal spending—creating a supportive environment for gold. Major financial institutions have recently raised their price targets for gold, suggesting that gold-backed digital assets could see a rebound as the price of bullion rises.

Citi’s strategists recently adjusted their gold price target to $3,000 per ounce for the short term, with a $2,900 average price for the year. UBS also raised its 12-month target to $3,000 per ounce, which could further boost the value of gold-backed tokens as the price of gold strengthens.