Overview
- Speaking in Davos, Ray Dalio said central banks are no longer treating fiat currencies and sovereign debt as reliable stores of value and are reallocating toward gold.
- Gold notched fresh record highs after leading major markets in 2024, reinforcing Dalio’s view that it serves as a portfolio diversifier during financial stress.
- Dalio cautioned that trade disputes can evolve into capital conflicts, reducing global appetite for U.S. Treasuries as heavy issuance meets waning demand.
- Treasury prices fell as investors weighed new tariff threats from Washington tied to disputes with European partners over Greenland.
- Crypto traders debated the implications for Bitcoin, with one outlet reporting BTC slipped below $90,000 as risk-off flows favored traditional safe havens.