As the market's confidence in the Fed's interest rate cut in September continues to strengthen, gold prices continue to hit record highs on Wednesday. Gold often becomes more attractive as rates decline compared to fixed-income assets such as bonds.

However, high gold prices have also raised concerns among some investors. Ray Dalio, founder of Bridgewater Associates, believes that gold should play a significant role in investment portfolios. He said that even at record highs, gold remains attractive.

Dalio said on CNBC:"Gold is an effective diversification tool, which means that if you adopt the classic asset allocation, a best portfolio should include more than 10% of gold when you encounter specific problems." He also pointed out that if investors hold a neutral view of the market, gold should also account for more than 10% of their investment portfolio.

Dalio believes that people's holdings of gold, including central banks, are generally low.

With currency depreciation and escalating geopolitical tensions, Dalio has been bullish on gold in recent years. He has repeatedly warned of inflation and potential debt crises and said he hedges risks by holding gold.

Dalio has pointed out that debt balances around the world are increasing, and countries can use currency depreciation (inflation) to prevent large-scale debt contractions, which will make debt and currency less attractive. Gold is a debt-free currency form, and although it is like cash, unlike cash and bonds, it is supported by debt default and inflation risks.

Vivek Dhar, director of mining and energy commodity research at the Commonwealth Bank of Australia, said: "Gold can find support under any circumstances this year, which is worth emphasizing."

Against the backdrop of continued tension in the Middle East and central banks increasing their holdings of gold, the appeal of gold as a safe-haven asset has pushed its price to new highs in recent months.

Dhar said: "These driving factors help offset the pressure of a strong dollar, which is mainly due to the market's previous expectation of the Fed's interest rate cut delay." He added that by the end of this year, the price of gold may exceed the bank's predicted $2,500 per ounce.

Bernard Dahdah, an analyst at French Foreign Trade Bank, believes that although gold prices are high, Trump's prospects for winning may stimulate central banks of various countries to further purchase gold, because changes in US foreign policy will prompt them to continue seeking alternatives to the US dollar. "If the gold price above $2,300 becomes the new norm, I would not be surprised," he said.

Edited by Jeffrey