Gold-Backed Tokens Expected to Thrive as Wall Street Grows More Bullish After Historic Rally.

Gold Price Forecasts Raised as Geopolitical Tensions and Central Bank Buying Propel Metal’s Value

Leading financial institutions have raised their gold price projections, buoyed by increasing fears of trade wars and the ongoing accumulation of the precious metal by central banks.

This week, both Citi and UBS upgraded their gold price forecasts, with expectations that the metal’s bull market will continue as geopolitical tensions and economic uncertainty continue to dominate global markets. As a result, gold-backed cryptocurrencies, such as PAXG and XAUT, have also seen a surge in value, aligning with the performance of the physical metal. These tokens, which are backed by physical gold held in secure vaults, have been outperforming the broader crypto market amid this volatility.

Citi revised its near-term gold price target to $3,000 per ounce, with an updated average forecast for the year set at $2,900, up from its prior target of $2,800. The revision was driven by rising concerns over global economic growth and the metal’s role as a safe haven asset during uncertain times.

UBS also raised its 12-month price target for gold to $3,000 per ounce, up from $2,850. Gold has already surpassed that target, trading at $2,860, marking a 9% increase year-to-date.

In a note, Mark Haefele, Chief Investment Officer at UBS, stated that gold’s “consistent role as a store of value and hedge against uncertainty” remains firmly intact. Similarly, Citi noted that rising trade tensions and geopolitical instability are accelerating the trend of de-dollarization and diversification of reserves, further fueling gold demand, particularly in emerging markets.

As global risks continue to mount, both financial institutions predict that gold and gold-backed tokens will remain strong, benefiting from the ongoing trend of central bank and investor demand.