Tags: gundlach | gold | invest | price

Gundlach: Gold Prices Set to Surge 30 Percent

Gundlach: Gold Prices Set to Surge 30 Percent
(Dollar Photo Club)

By    |   Thursday, 14 January 2016 09:33 AM


Gold is poised to surge to $1,400 an ounce as investors seek havens in the volatile global stock market, according to famed money manager Jeffrey Gundlach.

Gundlach, the CEO of big bond house DoubleLine Capital, sees the precious metal soon climbing 30 percent higher from its current price of $1,090.

Gundlach thinks gold recently hit a bottom, CNN Money explained.

Gundlach was one of the first to predict the sharp oil price crash in the fall of 2014 and then the junk bond turbulence of 2015.

He also says the United States is in a "stealth bear market" where many stocks are actually down 20 percent from their peaks. Stealth bear markets are usually followed by "full-on bear markets," he said.

Volatility in Chinese stocks early in the year battered appetite for risk, and that sent gold prices to two-month highs at $1,112 last week, but gold trading has since been choppy.

"Gold should be much, much higher, but there seems to be some kind of selling which is hanging in there around $1,093-85, which is stopping it from going higher," Afshin Nabavi, head of trading at MKS, told Reuters. "A little bit of it may be producer selling because they don't want to be caught lower... (and) it could very well be profit taking."

Falling oil prices have helped depress longer-term inflation expectations, strength in which can lift gold prices.

Chicago Federal Reserve Bank President Charles Evans said he was nervous about the potential effects of China's slowdown on the U.S. economy and about the possibility that inflation expectations may be slipping.

The Fed raised U.S. interest rates in December and attention has shifted to how many increases will follow in 2016. Rate hikes typically lower demand for non-interest-paying gold while boosting the dollar.

"We are still somewhat stuck for the time being, with not enough interest or buying to conclusively hold above $1,100, but with few participants wanting to aggressively short the market in the light of current conditions in the stock markets and China," Marex Spectron said in a note.

"So for the short term, I would look to trade a 1080/1100 range in the absence of any outside news or influences."

The world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, reported a 2.4 tonne rise in its holdings on Wednesday, bringing its total inflow for the year to 11.7 tonnes.

(Newsmax wire services contributed to this report).

Related Stories:

© 2021 Newsmax Finance. All rights reserved.


StreetTalk
Gold is poised to surge to $1,400 an ounce as investors seek havens in the volatile global stock market, according to famed money manager Jeff Gundlach.
gundlach, gold, invest, price
425
2016-33-14
Thursday, 14 January 2016 09:33 AM
Newsmax Media, Inc.
 
Newsmax TV Live
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved