Citadel CEO Ken Griffin has issued a stark warning about gold's unprecedented surge past $4,000 per ounce and the declining status of the U.S. dollar as a global safe haven asset, per Bloomberg reports. Gold futures have skyrocketed over 50% year-to-date in 2025, breaking the psychological $4,000 barrier.
The U.S. Dollar Index (DXY), which measures dollar strength against major currencies including EUR, JPY, and GBP, has plunged approximately 10% this year, currently trading near 98.5 levels.
"We're witnessing significant asset inflation away from the dollar as investors seek de-dollarization strategies and portfolio de-risking against U.S. sovereign exposure," Griffin stated. He characterized the U.S. economy as being on a "sugar high" despite equity markets reaching record highs driven by AI and computing advancements.
The "debasement trade" phenomenon has regained prominence, with investors flocking to hard assets like gold, silver, and Bitcoin (BTC) as protection against currency devaluation through excessive money printing.
Amid ongoing partial government shutdown and anticipated Federal Reserve actions, markets project a 92% probability of 25 basis point rate cut on October 29, potentially lowering federal funds rate to 3.75%-4.00% range. Further reductions could bring rates to 3.50%-3.75% by year-end.
Bitcoin (BTC) has surged 9% in October, achieving a new historic peak of $126,000 this week.