Cryptocurrencies backed by gold have underperformed over the week as the price of the precious metal saw a significant drop after moving up more than 10% so far this year. The decline came as speculation surrounding Trump’s tariffs being a negotiating tool.
Gold-backed tokens, including Paxos gold (PAXG) and Tether gold (XAUT), have declined roughly 1% over the past week to trade around $2,900 while the wider crypto market rallied. The CoinDesk 20 Index rose 5.7% over the same period, and the broader MarketVector Digital Assets 100 Index (MVDA) rose 3.4%.
The precious metal saw its price drop amid growing speculation that the new tariffs threatened by U.S. President Donald Trump are meant to be a negotiating tool. This hit the price of safe-haven assets, including the commodity and the U.S. dollar.
Trump announced reciprocal tariffs were on the table to match the tariff imposed by other countries on U.S. imports. Reciprocal tariffs…
