At the World Governments Summit in Dubai, billionaire investor Ray Dalio reiterated his bullish stance on gold, calling it the “safest money.” Despite recent pullbacks, Dalio believes the metal is crucial in a global system edging towards a “capital war.” He suggests allocating 5% to 15% of a portfolio to gold given market fragility.

Dalio's perspective matters because he founded Bridgewater Associates, one of the world's largest hedge funds. His views on gold are shaped by his focus on debt cycles, currencies, and financial market dynamics. Several analysts have set high price targets for gold, including JP Morgan at $6,300/oz by the end of 2026, signaling potential upside.

Dalio sees gold as insurance against rising debt and geopolitical strain. He cites mutual distrust between capital holders and issuers, sanctions, and capital controls as factors contributing to the looming "capital war." This environment makes assets tied to specific governments or currencies vulnerable, making gold a safe haven.

Over the past few years, gold has provided positive returns in comparison to the S&P 500 and Bitcoin. Investors should watch how geopolitical events and economic conditions impact gold prices and its role in portfolios. The price of spot gold was around $4,931/oz as of February 5, 2026.