Cryptocurrencies supported by gold have underperformed during the week because the price of precious metal has experienced a significant drop after having increased by more than 10% so far this year. The decline occurred while speculation surrounding Trump’s prices being a negotiation tool.
Golden back tokens, including Paxos Gold (Paxg) and Tether Gold (XAUT), decreased by around 1% in last week to exchange around $ 2,900 while the wider cryptography market rallied. The Coindesk 20 index increased 5.7% in the same period, and the wider index of digital market assets 100 (MVDA) increased by 3.4%.
Precious metal has seen its price drop in the middle of increasing speculation that the new prices threatened by US President Donald Trump are supposed to be a negotiation tool. This has reached the price of security assets, including the goods and the US dollar.
Trump announced that the reciprocal rates were on the table to correspond to the price imposed by other countries on American imports. Reciprocal prices could take months to implement, which leads to speculation to allow the United States to negotiate with other countries.
However, according to a recent report by Morgan Stanley, the recent decrease in Gold could still present an “opportunity for those looking for hedges” in the midst of global reflation, geopolitical tensions and increasing tax expenditure. Wall Street giants have recently increased their golden price forecasts, which would also help the price of digital assets to support gold as they are supported by ingots stored in chests.
Citi strategists have recently increased their price for short -term gold price to $ 3,000 and their average forecasts for the year to $ 2,900. Meanwhile, UBS has traveled its 12 -month gold goal at $ 3,000 per ounce.
