Ray Dalio, the founder of Bridgewater Associates, has recently stated that gold is worth a considerable portion in a portfolio, even when it is at a record high as it still remains attractive.

Dalio has also mentioned that gold is an effective tool for diversification:

This means that if you adopt a classic asset allocation, an optimal portfolio should have over 10% of gold when you encounter specific problems.

He also pointed out that if a investor holds a neutral view on the market, gold should account for over one-tenth of their investment portfolio.

If you are neutral, gold is a relatively attractive asset to hold, which is often held in lower proportions than other assets, including central banks, despite being an effective tool for diversification. If you are neutral, your portfolio may have over 10% of gold. I consider it as a configuration.

On Tuesday, supported by both the 'rate cut trade' and the 'Trump trade', gold reached a new historical high:

• Spot gold broke through the May 20th top of $2,450.07 during trading hours, hitting a new historical high, with the highest reaching $2,451.19, up about 1.2% in a day.

• Afterwards, gold prices continued to rise, with spot gold rising above $2,460 per ounce in less than an hour, continuing to hit new highs, with a daily increase of over 1.6%.

• At the close of the US stock market, spot gold rose 1.93% to $2,469.08 per ounce, shortly after the US stock market hit a new high of $2,469.93.

In recent years, Dalio has been bullish on gold, mainly due to currency devaluation and geopolitical tensions.

Editor/Somer