Ray Dalio Advocates for 10%-15% Gold Allocation in Diversified Portfolios Amid Economic Warnings

Ray Dalio, founder of Bridgewater Associates, recommends allocating 10% to 15% of a well-diversified portfolio to gold, emphasizing its role as a hedge during crises and its low correlation with other assets. Spot Gold (XAUUSD) has surged nearly 40% this year, reinforcing Dalio's long-standing bullish stance.

Dalio issued a stark warning about the U.S. economy, comparing mounting debt liabilities to "plaque in a blocked circulatory system" that could precipitate a financial heart attack. This macroeconomic uncertainty aligns with JPMorgan's forecast for gold's continued rally, targeting $4,000 by mid-2026 and $4,250 by year-end—a 17% upside potential.

The bank notes that erosion of Federal Reserve independence could further undermine confidence in the dollar, creating additional tailwinds for gold. Bridgewater's $136 billion weight lends institutional credibility to precious metals as a strategic asset class.