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Jeffrey Gundlach ... remains bullish on gold long-term
By: Kitco News | January 12, 2022

As the Federal Reserve gears up to take on surging inflation, billionaire "Bond King" Jeffrey Gundlach says he is now on "recession watch."

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Outlook on gold and the U.S. dollar

Gundlach's outlook on gold and the U.S. dollar has not changed — he remains long-term bullish on the yellow metal and long-term bearish on the greenback. "On a multi-year view, I'm quite bullish on gold because I'm bearish on a multi-year view on the dollar," he said.

However, in the near term, Gundlach is neutral until the gold market moves significantly. "We turned bullish on gold at $1,180 back in September 2018. And gold certainly went on a moonshot from there. We turned neutral at $1,800. We didn't get the top right; it went over $2,000. But you had an ample opportunity to reenter a gold at $1,800. [Right now], it's pretty much neutral. It is coiling, getting in tighter and tighter pennant formation. So there's no need to make a forecast. Just let the market break out one way or the other."

The DoubleLine CEO also pointed out that the U.S. stocks have gotten very expensive compared to the rest of the world, and he is betting on European equities to outperform this year. "So for value buyers, the message here is fairly clear," he said.

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