Ray Dalio Advocates for Increased Gold Allocation in Investment Portfolios

In a recent interview on CNBC's "Money Movers," Ray Dalio, founder of Bridgewater Associates, emphasized the importance of gold in investment portfolios, suggesting that it should constitute more than 10% of an optimal asset mix. Dalio argued that gold serves as an effective diversifier, particularly in times of market uncertainty. He noted that many investors, including central banks, are currently underweight in gold, despite its attractiveness as a stable asset. Dalio's remarks come as gold prices reached a record high, driven by growing expectations of an interest rate cut in September. The price of gold futures surged by 1.5%, hitting $2,465.30, surpassing the previous record of $2,454.20 set in May. This increase reflects a broader trend where lower interest rates tend to enhance the appeal of non-interest-bearing assets like gold. The hedge fund manager has maintained a bullish stance on gold over the past few years, citing the depreciation of currency values and escalating geopolitical tensions as key factors influencing his outlook. He believes that a neutral investor should consider increasing their gold holdings, as it remains an under-owned asset in the current market landscape. Dalio's insights highlight a growing recognition of gold's role in safeguarding wealth amid economic volatility, reinforcing the notion that diversifying with precious metals can be a prudent strategy for investors looking to navigate uncertain financial waters.