The pressures marked on tires are usually just a maximum that the tire can contain. The tires are designed for a certain type of load, but the tire manufacturers don't know what that load is.
Example: The tires that came on my Trek Domane say "inflate to 85 psi". So I did. The ride was VERY harsh. Talking to the cycling community, they said it should depend on your weight, weight distribution and terrain. On that bike, it's not a 50/50 weight distribution, but it's closer than most bikes, since there's a forward lean. I weigh 185 lbs. I found a calculator, which said my optimum tire pressure should be 65 rear, 60 front. That made the ride a LOT nicer and didn't seem to slow me down at all on pavement. It's still a little jarring if I ride on big-grained gravel, but they don't have aggressive enough traction for that anyway.
Another thing to remember is that the lower the pressure, the larger the contact patch. You want a large enough contact patch that you have enough traction for maximum braking and adequate cornering on whatever surface you're riding, but not so much that you have a lot of extra surface friction that kills your range.
For your bike, it appears to have 20x3" tires. How much do you weigh? What terrain do you usually ride on?
If you're 250 lbs and ride mostly on the road, it should be closer to 65 psi.
If you're 100 lbs and ride mostly on loose gravel or dirt, it should be closer to 30 psi.
A few more PSI in the rear in any case, since the weight bias on that bike is strongly toward the rear.
It's interesting that your tire is marked 35 psi and it's so much less than the manual says. Is that a max or a recommendation? Seems like if GoTrax recommends 40-65 psi but the tire mfr. says 35, the tire construction may not be rated to contain 65 psi and it may fail prematurely. Makes me wonder if they switched to a cheaper tire supplier...
Example from my fleet: My Juiced HyperScrambler 2 is a heavy bike @ 120 lbs. It has 20x4 tires with a street tread pattern. Almost all solid rubber, no lugs and just a few grooves for handling rain. The manual says inflate to something high like 40 psi, which is ridiculously high for these tires on this weight of bike. People read that and do it, but then they say the tires suck, because they don't hold traction in turns, they slip out and people are crashing. Of COURSE they are crashing, because the tires are over-inflated for the load. I'm running mine at 20 psi, where they absorb more shock and give a bigger contact patch. Even in this cold, they have never slipped.
I'm sure at 40 psi, I'd get more range, but I don't care; it's not worth crashing.
If I were riding on firm dirt or gravel, I'd probably go down to 13-15 psi and if it were a little loose, I'd probably go down to 10 psi. (and throw the knobbies on if I did it often enough)