DAVOS, Switzerland, January 23, 2026, 20:49 CET
- Gold and silver hit new highs as investors turned to safe havens amid geopolitical turmoil and a softer dollar
- Ray Dalio warns the old “rule-based” order is unraveling, boosting the chances of conflicts over capital and funding
- Asset managers and commentators are pushing gold and bitcoin as safeguards against “currency debasement” and rising inflation risks
Gold hit a fresh record on Friday, with silver breaking the $100 an ounce mark for the first time, driven by a surge in safe-haven demand amid geopolitical tensions and expectations of U.S. rate cuts. Spot gold gained 1.2% to $4,988.17 after peaking at $4,993.02. Silver hovered around $100.47, having reached $100.94 earlier, per the day’s trading figures. “This is safe-haven buying being extrapolated into something much bigger,” said Philip Newman, managing director at Metals Focus. 1
The metals rally has mirrored a tough week for the U.S. dollar and fresh swings linked to Washington’s tariff threats over Greenland. The dollar index held steady near 98.06 but fell about 1.65% on the week. Global shares nudged up after President Donald Trump backed off a tariff threat and dismissed any plans to seize Greenland by force. “It’s still a wait-and-see market,” said Gene Goldman, chief investment officer at Cetera Investment Management. 2
Ray Dalio, founder of Bridgewater Associates, said markets are dealing with something bigger than just a trade spat. Speaking to Fortune at Davos, he declared the old “rule-based” system is “gone.” Dalio warned that trade frictions could escalate into “capital wars” — battles over funding and cross-border money flows. In such conflicts, he noted, “even allies do not want to hold each other’s debt.” He also highlighted the risk that foreign investors might lose “the same inclination to buy U.S. debt.” 3
Dalio has been outlining a broader thesis: five forces he believes have shaped market patterns for centuries. He told Fortune that money and debt cycles, domestic politics, world order, nature, and technology often clash when debt outpaces income. That forces governments to pick between a harsh debt crisis or printing more money. “Certainly we’re having one of the greatest inventions… when human intelligence is working with artificial intelligence,” he added. 4
Crypto and macro voices are speaking more plainly. Forbes columnist Billy Bambrough said this week traders are bracing for fresh price shocks as the “currency debasement” trade makes a comeback, driving money into scarce assets like gold and bitcoin. Gold investor Peter Schiff warned on X: “Get ready for unprecedented stagflation” — weak growth alongside high inflation. Trade Nation analyst David Morrison linked the dollar’s selloff to Trump’s Greenland tariff threat. 5
U.S. inflation data this week painted a more nuanced picture than some online alerts suggested. The Personal Consumption Expenditures price index — the Federal Reserve’s favored inflation measure — ticked up 0.2% in November and stood 2.8% higher than a year ago, Reuters reported Thursday. The core index, stripping out food and energy, also rose 0.2% monthly and 2.8% annually. Reuters noted that a 43-day government shutdown delayed the data and skewed parts of the price readings. Economists say these numbers ease pressure on the Fed to cut rates at its upcoming meeting. 6
Wall Street is beginning to package hedging strategies into new products. On Thursday, Bitwise and Proficio Capital Partners rolled out an exchange-traded fund aimed at alternatives to the dollar and other government-backed currencies. The fund includes everything from gold to bitcoin, kicking off with at least a 25% allocation to gold. “When you’re not really being compensated for the risk of owning government bonds… it makes sense to look for alternatives,” said Bob Haber, Proficio’s chief investment officer and one of the firm’s founders. 7
U.S. officials are dismissing fears that tensions over Greenland will spark a major pullback from Treasuries. At Davos, Treasury Secretary Scott Bessent said he was “not concerned at all” about any sell-off in U.S. government bonds, highlighting “record foreign investment” in Treasury auctions. He also brushed off Denmark’s holdings, calling both “irrelevant.” 8
Price action is leading the story for now: gold has climbed roughly 7% this week, silver surging around 18%, marking their most robust weekly jumps in years. The bigger question remains unanswered — is this a fleeting panic buy or a durable move away from dollar assets?
