Gold Rate Today: As gold prices continue to surge globally, billionaire investor Ray Dalio has offered a stark explanation for why the rally may be far more than a cyclical move.
In a widely shared video posted on
Dalio argued that the world is entering a phase marked by “big imbalances and big interdependencies,” where capital flows are no longer governed purely by economic efficiency but by political risk. According to him, the US requires massive inflows of foreign capital, while foreign holders of that capital are increasingly worried about access, sanctions and policy unpredictability.
“There are big imbalances and big interdependencies. The US needs a lot of capital and countries are worried that the capital they own could be cut off, and that dynamic is already showing up in central banks shifting to gold and building up reserves,” Dalio said, adding that such behavior has historically accompanied periods of major conflict.
Why central banks are choosing gold over fiat currencies
Dalio believes this shift is already visible in the actions of central banks, which have been steadily increasing gold reserves while reducing exposure to US debt. In his view, this move is not just about the US dollar, but about the fragility of the entire fiat currency system.
In one of his strongest warnings, Dalio said the world is moving away from a dollar-centric system toward a multipolar reserve framework. He believes central banks are actively diversifying their reserves to reduce reliance on any single country or currency.
“It’s the beginning of the end of the monetary system as we know it. It’s not just the US dollar — it’s fiat currencies across the UK, Europe, China and Japan, all facing similar debt problems,” Dalio said. He argued that these shared pressures are pushing policymakers toward an asset that cannot be debased through money printing.
Gold, Dalio said, is being chosen not for yield, but for credibility. “Gold has always been the main currency. It’s the only non-fiat currency — in other words, not something that can be printed,” he explained, underscoring why central banks see it as a neutral store of value in an increasingly fragmented world.
Dalio also linked this trend to rising political conflicts and tariffs, which he believes are eroding trust in US leadership. According to him, trade wars may grab headlines, but capital flows — particularly moves away from US Treasuries — could have a far more profound impact on global markets.
According to Dalio, this is why gold’s rally should not be dismissed as speculative excess. Instead, he views it as a structural repricing driven by official institutions rather than retail investors. “We’re seeing central banks buying a lot of gold and reducing their holdings of dollars, and that’s why we’re having this generational rally in gold,” he said.
Gold Rate Today
In the international market, gold prices remained elevated after crossing a key psychological threshold in the previous session. Spot gold rose 1% to $5,065.07 per ounce as of 0329 GMT, after hitting a record $5,110.50 on Monday. US gold futures for February delivery edged lower by 0.4% to $5,059.90 per ounce, reflecting some profit-taking at record levels.
Who is Ray Dalio?
Ray Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund, and one of the most influential macro investors of the modern era. Known for anticipating major economic turning points, Dalio has long studied debt cycles, monetary systems and the rise and decline of global powers. His frameworks on “big debt crises” and long-term monetary transitions are widely followed by policymakers, central banks and institutional investors worldwide.
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