Citadel’s Griffin says U.S. on ‘sugar high’ as investors rush to gold

[stack of shiny gold bars 3d illustration]
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Citadel’s Ken Griffin warned that investors are starting to consider gold as a safer asset than the dollar, calling the trend “really concerning.”

“We’re seeing substantial asset inflation away from the dollar as people look to de-dollarize or de-risk their portfolios against U.S. sovereign risk,” Griffin said in a Monday interview with _Bloomberg_.

Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) surpassed the $3,900-an-ounce level for the first time on Monday, helped by safe-haven demand following a drop in the yen, uncertainty from the ongoing federal government shutdown, expectations of potential rate cuts, and broader concerns about inflation and dollar weakness. This year, investors have flocked to gold, silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]), and Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) in what’s been dubbed the “debasement trade.”

“The U.S. is experiencing fiscal and monetary stimulus more typical of a recession, which is stoking markets,” Griffin added. “We’re definitely on a bit of a sugar high in the U.S. economy right now.”

Griffin made the remarks at a Citadel Securities conference in Manhattan.

In the interview, Griffin also downplayed the impact of the $100,000 cost to keep employees on H-1B visas for his company. “Fortunately, in our sector, a $100,000 one-time cost to hire someone isn’t make-or-break,” he said. “I worry far more about brilliant students in India who don’t come to America, or gifted math and physics students who stay in China.”

Gold climbed 1.5% to $3,945/oz at the start of the week, extending a seven-week rally and bringing year-to-date gains to nearly 50%. On Tuesday, spot gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) was little changed around $3,961.12 an ounce, after hitting an all-time high [https://seekingalpha.com/news/4502214-gold-hits-another-record-in-relentless-rally-goldman-lifts-2026-target-to-4900oz]of $3,977.19 earlier in the session.

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