Jeffrey Gundlach, the bond king of Wall Street, founder and CEO of DoubleLine, has re-emphasized his bearish call for the US dollar while suggesting additional upside potential for the price of gold.
Key quotes (via Kitco.com)
“Ultimately, I think gold will rise much higher as the dollar falls and commodities in general will have another important leg in the rally that started 15 months ago,”
“The dollar is falling. I believe that this is the core of everything. And this is the most important thing. “
The US dollar index is at a critical juncture.
Regarding inflation, Gundlach asked, “How does anyone know if it will be transitory or not?”
He added that “there may be more to the story of inflation than just temporary base effects.”
“The only argument in favor of the transitory is the base effects of a year ago. However, if we look at the monthly CPI and PPI numbers, the story of the base effect will evolve somewhat because we continue to accelerate not only from a year ago, but from three and four months ago. ”