Dalio: Gold has replaced U.S. Treasuries as a risk-free asset

[Dalio: Gold has replaced US Treasuries as a risk-free asset] Recently, Spot gold has rapidly refreshed key levels. On October 18, it fell nearly 2% and lost the 4300 USD mark, but just one trading day later, on October 20, Spot gold regained all losses and hit a new historical high, reaching 4381.484 USD during the day, with an increase of 2.46%. What factors have driven the recent surge in gold prices? Explaining the rise in gold prices through the traditional decline in real interest rates has become somewhat inadequate. On October 18, Bridgewater founder Ray Dalio analyzed the reasons for the rapid increase in gold prices from another perspective on social media. Dalio stated that gold has begun to replace some U.S. Treasury bonds, becoming a risk-free asset in many portfolios, especially among central banks and large institutional investors. These portfolio holders have reduced their holdings of U.S. Treasury bonds relative to gold.