The "explosive, potential energy" of a huge "head-and-shoulders bottom" base is signalling a $1,000 move higher in gold prices, Jeffrey Gundlach,the founder of DoubleLine Capital, said last week at a New York event, reports Reuters. "Gold is maintaining an upward pattern above its rising 200-day moving average, which is extremely good," he said, referring to patterns that analysts see as bullish. "I'm not predicting it I'm letting the market prove itself."
The "Bond King" also argued that US Treasuries were "not attractive" despite rising yields, as various economic indicators suggest that US inflation is set to rise, which would hurt prices of government bonds (thus driving yields higher).
Meanwhile, the Federal Reserve, under new chairman Jerome Powell, will be less sensitive to panicky stockmarket movements, Gundlach said. "The Fed is not going to bail out the market unless there is a big problem." Concerns over privacy have led to more talk of regulating social-media companies, which could burst the bubble in US stocks (see main story), Gundlach believes. But he is bullish on commodities in general.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
He reckons the SPDR S&P Oil & Gas Exploration and Production exchange-traded fund (ETF) in particular is worth a look it has not yet received the full benefit of the crude-oil rally, he told CNBC. "If you look historically at the energy sector versus the S&P 500, not surprisingly it's correlated with movements in oil. That hasn't happened this time, and I think there's a catch-up there."
-
‘I installed a heat pump in my home – here are five things I’ve learnt’From the size and noise of a heat pump to how much it costs to run one, Ruth Emery reveals what she’s learnt after installing one in her home six months ago
-
3 ways to work out if a stock is good valueThe only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?
-
How to invest in energy and metals as tech stocks crashAnalysis It’s been a terrible week for stockmarkets. But not everything is crashing – “real” assets such as metals and energy are holding up well and should have a good 2022. Dominic Frisby picks the best ways to buy in.
-
Here’s how gold could rise above $7,000 an ounceFeatures That the gold price could hit $7,000 an ounce is a logical and plausible possibility, says Charlie Morris. Here, he explains how it could get there.
-
Gold will regain its shineFeatures The dash for gold suggests that investors see rising risks in markets and are seeking out an asset traditionally seen as the ultimate safe haven.
-
Gold has finally broken free – is its bull market here at last?Features Gold has had a quiet few years. But the conditions are now ripe for it to go on a proper bull run. John Stepek explains why.
-
Gold is back in a bull market – it’s time to buyFeatures The equity bull market is over, says Charlie Morris. But gold's is just starting.
-
Why it’s worth holding a bit of gold in your portfolioFeatures Global equities are almost in bear market territory. We don’t know what will happen next. But that’s exactly why you should have some gold, says John Stepek.
-
This may be one of the only cheap assets left out thereFeatures Wherever value investors look, assets are expensive, says Dominic Frisby. There is, however, one last hold-out where you might still be able to pick up a bargain.
-
Gold’s quiet comebackNews Gold has been among the best performing assets this year and could continue rising.
