Gundlach Predicts Continued Gold Rally

Jeff Gundlach, often referred to as the “Bond King,” believes that the recent surge in gold prices isn’t finished. The CEO of Doubleline Capital has suggested that gold could potentially reach $4,000 per ounce. Recently, gold prices increased by 20%, jumping from about $3,345 as of Friday afternoons.

In a conversation with CNBC this week, Gundlach noted that the volatility induced by tariffs is fundamentally altering traders’ perspectives on precious metals, particularly as it constitutes 25% of the annual meetings.

“I think we’re at a point where money is no longer just about speculation for short-term traders or mere survivors. There’s a growing sentiment that people view money as a tangible asset, driven by fears related to geopolitical chaos and tariffs,” he explained.

According to data from the World Gold Council, the global market for gold ETFs rose significantly, amounting to $397 billion in April, up from $11 billion.

Additionally, a recent Bank of America Survey found that 58% of global fund managers consider gold to be the safest investment amid a possible trade war.

Gundlach also expressed skepticism about the general environment for riskier assets like stocks, suggesting that they may face “breakdowns” in the near future, with the S&P 500 potentially dropping to as low as 4,500—a significant 20% decrease from current levels.

“It feels like we’re in a risk-off market for the time being,” he noted.

Other market analysts have made optimistic predictions for gold in recent months, citing uncertainties tied to trade policies from the Trump administration. Goldman Sachs recently raised its price target for gold to $3,700 per ounce, driven by substantial policy uncertainties and prospects for a slowdown in the U.S. economy. Similarly, UBS and Bank of America have both set their price targets for gold around $3,500, indicating a potential upside of 4% from current levels.