Gold Price Analysis: XAU/USD will go much higher as the dollar falls – DoubleLine's Gundlach
Jeffrey Gundlach, Wall Street's bond king and Founder and Chief Executive Officer of DoubleLine, re-emphasized his bearish call on the US dollar while suggesting additional upside for gold price.
Key quotes (via Kitco.com)
"Ultimately, I think gold will go much higher as the dollar falls and commodities broadly have a further significant leg to the rally that began 15 months ago,"
"The dollar going down. That's the linchpin to everything, I believe. And so, that's the thing that is the most important.”
The US dollar index is at a "critical juncture.”
On inflation, Gundlach asked, "how does anybody know whether it's going to be transitory or not?"
He added that “there might be more to the inflation story than just the transitory base effects.”
"One thing arguing for transitory is the base effects from a year ago. If we look at the month-by-month CPI and PPI numbers, though, the base effect narrative gets exploded a little bit because we continue to accelerate not just versus a year ago, but versus three and four months ago.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
