Ken Griffin, CEO of Citadel, expressed his deep concern this week in the face of the outbreak of the price of gold and its implications on the role of the US dollar as a global refuge value, according to Bloomberg. Gold’s term contracts have just exceeded $ 4,000 per ounce, a gain of more than 50 % so far in 2025.
The US dollar, measured by the US dollar index (Dxy) which follows the value of the dollar compared to a basket of main foreign currencies, including the euro, the yen and the pound sterling, has lost around 10 % of its value this year and is currently nearly 98.5.
Griffin said to Bloomberg: “We see substantial inflation of assets outside the dollar while people seek effective means of dedollarizing or reducing the risks of their portfolios compared to the sovereign sovereign risk. “Griffin added:” the American economy is definitely in full shape of sugar at the moment “. American actions reach unprecedented heights in a context of boom in artificial intelligence and high performance calculation.
The discourse of the “depreciation trade” has resurfaced, referring to investors who turn to lasting assets such as gold, money and bitcoin to protect themselves against monetary depreciation, a process in which an excessive monetary creation reduces the purchasing power of a currency.
Meanwhile, the US government remains partially paralyzed and rate reductions are widely expected. According to the CME Fedwatch tool, the markets estimate at 92 % the probability of a drop of 25 basic points at the next meeting of October 29, which would bring the rate of federal funds to a range of 3.75 % to 4.00 %. Additional discounts are expected by the end of the year, bringing the rate between 3.50% and 3.75%.
Bitcoin jumped 9 % in October, reaching a new historic summit of $ 126,000 on Monday.
