Gold Prices Continue To Rise, Futures Cross $4,000 For First Time: Ray Dalio Reportedly Says It’s Like Early 1970s Again

Gold prices continued to climb on Tuesday, surging to a new record high as the U.S. government shutdown entered its seventh day. Gold futures also surged, crossing $4,000 for the first time.

Spot gold prices climbed to a new high of $3,985 per troy ounce, surging by 0.6% before paring some of the gains. Gold futures maturing in December gained 0.8% to rise to $4,008, before paring some of the gains.

Bridgewater Associates founder Ray Dalio reportedly recommended that investors increase their allocation for gold in their portfolios. “It’s very much like the early ’70s...where do you put your money in?” Dalio asked, according to a CNBC report, adding that debt instruments are not an “effective storehold of wealth” due to the current supplies.

“Gold is a very excellent diversifier in the portfolio. If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold … because it is one asset that does very well when the typical parts of the portfolio go down,” Dalio said Tuesday at the Greenwich Economic Forum in Greenwich, Connecticut.

Gold prices have surged 52% year-to-date, crossing the $3,000 level for the first time in March. Since then, the price of the yellow metal has soared by nearly 33%.

According to a Reuters report, Marex analyst Edward Meir said that the current rally is being driven by the U.S. government shutdown, political upheaval in France, and rising Japanese yields. The report added that UBS analysts now expect gold prices to reach $4,200 per ounce by the end of 2025.

Meanwhile, U.S. equities were mixed in Tuesday's opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.09%, the Invesco QQQ Trust ETF (QQQ) gained 0.08%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.13%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The SPDR Gold Shares ETF (GLD) was up 0.57% at the time of writing, while the iShares Gold Trust ETF (IAU) was up 0.56%. The GLD and IAU ETFs have both surged more than 51% year-to-date.

Also See: PayPal Stock Rallies After Company Announces Ads Manager For Small Businesses With No Upfront Costs

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