DoubleLine Capital's Jeffrey Gundlach: I think the 25 point rate cut is the right move -CNBC

DoubleLine Capital's Jeffrey Gundlach: I think the 25 point rate cut is the right move -CNBC

Billionaire Jeffrey Gundlach, CEO of DoubleLine Capital, remains bullish on gold, believing it will hit a new all-time high by the end of the year. In a recent webcast, Gundlach expressed his confidence in the precious metal, citing its performance against stocks and Bitcoin (BTC) so far this year .

According to Gundlach, gold has outperformed Bitcoin by double in 2025, with Bitcoin achieving a 19% return compared to gold's 38%. He attributes gold's strong performance to the United States' ongoing budget deficits and the outflow of foreign capital from the country. Gundlach suggests that these factors will continue to support gold's price in the coming years.

The DoubleLine Capital CEO also mentioned that gold's recent consolidation period was a precursor to its upward breakout, with the metal now trading above $3,500. He predicts that gold could reach $4,000 by the end of the year.

Gundlach's bullish stance on gold comes amidst the Federal Reserve's 25-point rate cut, which he believes is the right move. The rate cut is expected to stimulate the economy and potentially boost gold prices further.

While Gundlach is optimistic about gold's prospects, he remains cautious about the broader economic outlook. He is not advocating for a total shift in asset allocation but suggests that gold could serve as a valuable hedge against economic uncertainty.