Gold’s record rally is not about to be finished, according to “Bond King” Jeff Gundlach.
The CEO of Doubleline Capital predicted that the price of precious metal could climb up to $ 4,000 per ounce, a gain of 20% compared to the price of Friday afternoon of around $ 3,345.
Addressing CNBC this week, Gundlach said that volatility linked to prices fundamentally modified how traders have seen precious metal, pointing to its 25% rally since the start of the year.
“I think that that tells us that we are in a regime where gold is no longer a speculation for short -term traders, or for survivalists as long -term taking. I think people consider gold as a class of assets for fear of turmoil which takes place geopolitically, with the prices and everything else, and just the quantity of debt which existed Gundlach.
The World ETF GOLD market supported by physics inflated by $ 11 billion in April to $ 397 billion, according to World Gold Council data.
Meanwhile, 58% of global fund managers in a recent Bank of America survey said they thought gold was the safest asset of a full -fledged trade war.
Gundlach added that he thought that the backdrop of other risk assets, such as actions, is difficult for the moment. He doubled on his forecasts according to which actions could see a short -term “breakdown”, which can potentially take the S&P 500 as low as 4,500. This would imply a 20% drop in current levels.
“I have the impression that we are on a risk market on an intermediate basis,” he said.
Other forecasters have issued bruising calls on gold in recent months, citing uncertainty from Trump’s trade policy.
Goldman Sachs has raised his course goal for precious metal last month at $ 3,700 per ounce, pointing high levels of political uncertainty and a potential slowdown in the American economy.
UBS and Bank of America also issued price targets of $ 3,500 on gold, which involves 4% of current levels.
Get the last price of gold here.
Get the last price of gold here.
