Dollar Weakens While Gold Tops $4,000, Ken Griffin Issues Warning

Citadel CEO Ken Griffin has raised concerns over gold’s sharp rally and the broader implications for the U.S. dollar, Bloomberg reports. Gold futures recently climbed above $4,000 an ounce, marking a year-to-date gain of more than 50%.

The dollar has weakened in tandem. The U.S. Dollar Index (DXY), which measures the greenback against major currencies such as the euro, yen, and pound, has fallen about 10% in 2025, currently trading near 98.5.

Griffin told Bloomberg, “We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize, or de-risk their portfolios vis-à-vis U.S. sovereign risk.” He added, “We’re definitely on a bit of a sugar high in the U.S. economy right now,” pointing to record equity levels fueled by growth in artificial intelligence and high-performance computing.

Investors are increasingly turning to hard assets like gold, silver, and bitcoin to hedge against monetary debasement, a process where excessive money creation erodes a currency’s purchasing power.

The U.S. economy faces ongoing uncertainty, with a partial government shutdown and markets widely anticipating rate cuts. According to the CME FedWatch Tool, there is a 92% chance of a 25-basis-point cut at the Fed’s October 29 meeting, lowering the federal funds rate to 3.75%–4.00%. Further cuts could bring rates down to 3.50%–3.75% by the end of the year.

Bitcoin has also benefited, rising 9% in October and reaching a new all-time high of $126,000 on Monday.