Gold-Backed Tokens Surge as Wall Street Bulls Eye $3K Gold

Wall Street's bullish sentiment, fueled by record rallies, is set to benefit gold-backed tokens as major financial institutions raise their gold price forecasts. Citi and UBS have both increased their gold price targets due to growing trade war fears and central bank accumulations, which have driven the precious metal's price higher. Gold-backed cryptocurrencies, such as PAXG and XAUT, have been outperforming the broader digital asset market, aligning with the rising gold price and poised to gain further if the bullish trend persists.

Citi has adjusted its short-term gold price target to $3,000 per ounce and increased its average forecast for the year to $2,900, up from $2,800. The bank cited global growth concerns, trade wars, and geopolitical tensions as factors driving demand for the precious metal. Meanwhile, UBS hiked its 12-month gold price target to $3,000 per ounce, up from $2,850, with strategists led by Mark Haefele noting gold's enduring appeal as a store of value and hedge against uncertainty.

Gold-backed tokens, such as PAXG and XAUT, have been benefiting from this trend. These tokens, backed by physical gold stored in vaults, have been outperforming the wider cryptocurrency market amid the uncertainty. As Wall Street continues to go bullish, investors may increasingly turn to gold-backed tokens as a safe haven and a hedge against market volatility.