via kitco:
DoubleLine Capital CEO Jeffrey Gundlach turned bullish on gold after it crossed the $1,800 an ounce level and believes it is a good time to purchase and hold the precious metal.
Gold did well in non-dollar terms last year, but recently gold started to perform in U.S. dollar terms as well, Gundlach said during his ‘Just Markets’ webcast Tuesday.
“Over the past two and a half years, you haven’t had much action in gold other than sideways. In other currencies, gold has done quite well. And now, as the dollar is weakening, gold is back, and it is above its 200-day moving average,” Gundlach said.
Gold is one of Gundlach’s recommendations for assets to own in 2023. “It’s a reasonably good time to buy gold and own gold. One of my recommendations … to own was gold, which I turned bullish on back at about $1,800 or so. We’re not very far above that right now,” he said.
February Comex gold futures were last trading at $1,873.60, down 0.15% on the day.
Helping gold out this year will be a lower U.S. dollar, which has already peaked in 2022, according to Gundlach, who does not see the U.S. dollar index returning to 115. At the time of writing, the index was at 103.30.
Macro outlook: recession, inflation, Fed
From the macro perspective, the yield curve is “screaming recession” because of the Federal Reserve’s more aggressive actions in the second half of the year, billionaire “Bond King” Gundlach told market watchers. And that is just one of the many indicators pointing to a coming recession in 2023.