It’s one thing to say gold is going higher. But, when Jeffrey Gundlach, manager of the $49 billion DoubleLine, says he thinks gold could hit $1,500 per ounce by the end of this year, that’s something people pay attention to.
In a webcasted presentation called “Penny For Your Thoughts”, Gundalch noted the 96 percent reduction in the U.S. dollar’s purchasing power since the Federal Reserve Bank was established a century ago, likening the end of the gold standard to the silver debasement of the Roman denarius from 64 to 270 AD. During the question and answer period, Gundlach said he thought gold could move to $1,500 this year.
The last time gold was at $1,500 was in April, 2013. Gold traded at $1,260 per ounce on Wednesday.
“Of course, there’s a chance [Gundlach] could be right and gold could go higher,” said Richard Ross, global technical strategist at Auerbach Grayson. “But, there’s very little in the short-term technicals to suggest that move has begun in earnest.”
You can see the full “Talking Numbers” segment below:
Related: SPDR Gold Trust (ETF)(NYSEARCA:GLD), ETFS Gold Trust(NYSEARCA:SGOL), Freeport-McMoRan Copper & Gold Inc.(NYSE:FCX)