Dalio: Gold has replaced US Treasury bonds as the risk-free asset

Jinse Finance reported that recently, spot gold has continuously and rapidly broken through key levels. After a sharp drop of nearly 2% on October 18, falling below the $4,300 mark, spot gold regained all lost ground in just one trading day on October 20, and once again reached a new all-time high, hitting $4,381.484 during the session, with a daily increase of 2.46%. What factors have driven the recent surge in gold prices? Explaining the rise in gold prices solely by the traditional decline in real interest rates has become somewhat inadequate. On October 18, Bridgewater Fund founder Ray Dalio analyzed the reasons for the rapid rise in gold prices from another perspective on social media. Dalio stated that gold has begun to replace some US Treasury bonds as a risk-free asset in many portfolios, especially in central bank and large institutional portfolios. The holders of these portfolios have already reduced their holdings of US Treasury bonds relative to gold.