DoubleLine’s Jeffrey Gundlach believes holding a 25% gold position isn’t excessive
DoubleLine Capital CEO Jeffrey Gundlach is getting so bullish on gold that he is saying investors could hold up to a quarter of their portfolios in the metal, far above what normal portfolio recommendations set for commodities. Gundlach, whose firm managed about $95 billion at the end of 2024, believes gold will continue to stand out amid an already stellar year on the back of inflationary pressures and a weaker dollar. “I think almost certainly gold will close above $4,000 before the end of this year,” Gundlach said on CNBC’s ” Closing Bell. ” His forecast represents a 7% upside from the current record level. “I still think a 25% type weighting in gold is not excessive. I think that is an insurance policy. It’s in a winning mode because of the weaker dollar and I believe that’s going to continue,” he said. A weaker U.S. dollar makes greenback-priced gold more appealing to holders of other currencies and higher inflation makes the metal more attractive as a store of value. Gold also gains appeal when interest rates fall, as lower yields reduce the opportunity cost of holding the non-yielding asset. Gundlach’s gold call is also partly based on his belief that inflation will stay stubbornly elevated because of the impact from tariffs. @GC.1 YTD mountain Gold futures year to date “I think that the inflationary outlook is very uncertain. [Powell] is correct in stating that we don’t really know what the tariff effect… when it’s going to kick in, what it’s going to be,” Gundlach said. The bullion hit a new intraday all-time high of $3,744 after the Federal Reserve cut interest rates for the first time this year and signaled a steady path of easing through the rest of the year. Gold has been a winning asset this year, rising more than 40%. Gundlach pointed out that the rally in gold has spread to gold miner stocks, which suggested to him that retail investors are starting to join the momentum trade on the gold market. Watch Gundlach’s full interview here .
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