Debasement Trade returns as banks raise Gold targets Gold vs US-DollarBLACKBULL:XAUUSDBlackBull_MarketsBillionaire investor Ray Dalio has urged investors to reduce exposure to bonds and hold more gold, alongside “a bit” of Bitcoin, as concerns around the so-called “debasement trade” return to markets. The idea is that rising government debt, persistent inflation and monetary expansion could weaken the long-term value of the U.S. dollar, increasing demand for assets such as gold. The precious metal briefly traded as high as $4,696 an ounce on Tuesday, its highest level in more than three months. Gold has now gained around 15% in August alone. And some of Wall Street’s largest banks think the rally has further to go. Citi raised its zero-to-three-month gold price target to $4,800 an ounce this week, while maintaining a six-to-12-month target of $5,000. JPMorgan is also watching the $5,000 level, but believes gold could get there considerably sooner. The bank said cooler inflation data, combined with a market unconvinced by Fed Chair Kevin Warsh’s messaging, could see gold approach $5,000 within days rather than months.