Gold Smashes $5,100 Barrier: Dalio Warns of 'Capital Wars'

LONDON/SINGAPORE – Spot gold prices (XAU/USD) surged past $5,190 per ounce on Wednesday, continuing a relentless rally driven by sovereign accumulation and fears of systemic financial fragmentation.

Dalio: The Shift to “Sound Money”

Ray Dalio, founder of Bridgewater Associates, warned at the World Economic Forum that the global financial system is transitioning from trade wars to “capital wars.”

He argued that the weaponization of the US dollar and sanctions risks are forcing global central banks to re-evaluate their reserve compositions.

“Central banks are selling debt and buying gold because, in this environment, gold is the safer currency,” Dalio stated.

Sovereigns Dumping Treasuries

Reports indicate that sovereign wealth funds and central banks are actively reducing exposure to Western fiat debt, exacerbated by US fiscal concerns and the widening deficit.

Institutional investors are heeding Dalio's advice to maintain a strategic 5%–15% allocation in gold.

Key Technical Levels

• Resistance: Psychological hurdles at $5,200 and $5,250.
• Support: Strong buying interest remains at $5,000, now a psychological floor.