Tags: Gundlach | gold | 1500 | dollar

DoubleLine's Gundlach: Gold Might Reach $1,500 This Year

By    |   Thursday, 12 June 2014 02:30 PM

Gold could climb to $1,500 an ounce by year-end, says Jeffrey Gundlach, CEO of DoubleLine Capital.

He made the prediction in the question-and-answer portion of a webcast this week. Gundlach acknowledged that the forecast might be judged as "nutty" by some, Business Insider reported.

August gold futures traded at $1,273.60 on the Comex Friday morning.

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Gundlach apparently didn't cite the reasons for his bullishness on gold. But during his presentation, he said the dollar's purchasing power has plunged 96 percent since the Federal Reserve was created more than 100 years ago, according to CNBC and Yahoo's Talking Numbers.

Gundlach compared the end of the gold standard in 1971 with the silver debasement of the Roman denarius from 64 to 270 A.D. "Currency debasement is not new," he said.

Gold plunged 28 percent in 2013, and many market participants expect further losses this year, as the Fed continues to withdraw its stimulus.

Richard Ross, global technical strategist at Auerbach Grayson, doesn't share Gundlach's optimism for gold.

"Of course, there's a chance he could be right, and gold could go higher," Ross told CNBC and Yahoo's Talking Numbers. "But, there's very little in the short-term technicals to suggest that move has begun in earnest."

Gold has fluctuated in a trading range of $1,180 to $1,400 for much of the past year, Ross noted.

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Gold could climb to $1,500 an ounce by year-end, says Jeffrey Gundlach, CEO of DoubleLine Capital.
Gundlach, gold, 1500, dollar
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2014-30-12
Thursday, 12 June 2014 02:30 PM
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