Unleash Your Inner Gold Digger: Why Wall Street Can’t Get Enough of Gold-Backed Tokens!

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What to know:

  • Major financial institutions like Citi and UBS have risen to new heights in their predictions for gold prices, all thanks to fears of trade wars and central banks acting as if they were in a competition for the most glittering hoard.
  • Gold-backed cryptocurrencies, such as PAXG and XAUT, have found themselves flourishing quite splendidly—outpacing their digital counterparts, much like a sprightly young lady at a ball, when the gold prices continue to ascend and bring further fortune, should this bullish trend persist.

Indeed, it cannot go unnoticed that our esteemed financial institutions have been gallantly raising their gold price predictions, as the esteemed precious metal benefits most handsomely from the palpable fears of trade disputes and the voracious appetites of central banks accumulating their gilded treasures.

In a display of uncharacteristic optimism, this week saw the strategists at Citi and UBS adjust their forecasts for gold prices. The bullish run of this sparkling metal seems poised for further ascendance, particularly as the markets find themselves ensnared by geopolitical tensions and a few economic uncertainties that would make even the most stoic of individuals tremble.

Our gold-backed cryptocurrencies are having a jolly good time amidst this trend, with tokens like PAXG and XAUT keeping in lockstep with the glimmering price of their physical counterpart. These tokens, as they exist backed by tangible gold stashed away in vaults, have been merrily outpacing the broader cryptocurrency market as uncertainty reigns supreme.

In an impressive demonstration of ambition, Citi has elevated its short-term gold price target to a staggering $3,000 per ounce, while its average yearly forecast has now risen to $2,900 from a mere $2,800, according to reports from Investing.com. Not only do they cite the factors mentioned previously, but global growth concerns, which seem to multiply like rabbits, are expected to further drive demand for this cherished metal.

Meanwhile, UBS has also jumped on the bandwagon, raising its 12-month gold price target to a dazzling $3,000 per ounce, up from a modest $2,850. The precious metal is already surpassing this latter figure, currently trading at around $2,860 after a delightful rise of approximately 9% thus far this year—truly a charming performance!

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2025-02-08 22:51