Gundlach: Gold to $4,000, Musk's DOGE Good

Jeffrey Gundlach, CEO and CIO of DoubleLine, reiterated his bullish outlook on gold, predicting it will reach $4,000.

The Gold Bull Market Continues

On a recent investor call—held before gold futures crossed the $3,000 mark—Gundlach reaffirmed his long-standing bullish stance.

• “Gold continues its bull market that we’ve been talking about for a couple of years, ever since it was down to $1,800,” he said.
• He expects gold to reach $4,000, though he is uncertain about the timeline. “I feel like that’s the measured move anticipated by the long consolidation at around $1,800,” he added.

On Central Bank Demand and Gold’s Role

Gundlach highlighted aggressive central bank purchases of gold, noting the trend is unlikely to reverse.

• “Purchases have increased at a very sharp, steep trajectory. And I don’t expect this to stop.”
• He sees gold’s appeal as a store of value outside the traditional financial system, which he describes as being in a “state of flux.”

On European Equities and the Dollar’s Decline

Gundlach is not surprised by the recent outperformance of European stocks as the U.S. dollar trends lower.

• DoubleLine began investing in Europe around 2021. “It was painful for a couple of years from 2023 to 2025, but now it’s got a lot of momentum,” he said.
• He views the shift as part of a broader market rotation away from U.S. dominance.

Regarding Tech Vulnerability and Fiscal Policy

Gundlach addressed the changing perception of major U.S. tech stocks, particularly the “Magnificent Seven.”

• “They were viewed as invulnerable, but now it’s clear they are not. Every sector is always vulnerable, and we’re starting to obviously see that.”

He also supports Elon Musk-led government spending cuts.

• “I’m quite in favor of that happening because it’s the only way we can try to get our fiscal house in order.”

Recession Risk and Fed Policy

Gundlach assigns a 60% probability of a U.S. recession this year—well above Wall Street consensus.

• He described the bond market’s reaction to Federal Reserve policy as volatile.
• “It’s been a roller-coaster ride—pricing in anywhere from one to eight cuts, then back to one, and now moving toward more cuts again. This continues to gyrate.”

Bottom Line: Gundlach remains firm in his gold outlook, sees market rotations accelerating, and expects economic uncertainty to persist.

Continues here