Ray Dalio warns monetary order is 'breaking down' and points to gold's strength

Billionaire hedge fund manager Ray Dalio said the global monetary order is "breaking down" and highlighted gold's strong performance while speaking to CNBC's Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland. Dalio warned that central banks were "not handling fiat in the same way," saying both fiat holders and "those who need it" were concerned about each other and that this could create "a big issue" down the line.

He added, "Fiat currencies and debt as a storehold of wealth, is not being held by central banks in the same way, and … there was a change," and noted, "The biggest market to move last year was the gold market, far better than the tech markets and so on." His remarks came hours after US President Donald Trump threatened tariffs on European countries following pushback over the president's public statements questioning Denmark's "right of ownership" to Greenland.

Dalio had earlier said in December that Trump's economic policies could be "weakened greatly in the 2026 mid-term elections and reversed in the 2028 elections" if Democrats retook one or more chambers of Congress. The US president was expected to travel to Davos on Tuesday to attend WEF talks.

Key Topics

Business, Ray Dalio, Davos, World Economic Forum, Gold, Central Banks