Gundlach: Gold on the Verge of “Thousand Dollar” Breakout

Via GoldSilver.com,

Two charts paint a succinct and elegant picture of the gold/USD trade at the moment.

The USD has just begun its third successive fall after another lower recovery high in a hugely strong multi-decade chart pattern, fueled by international economic feuds and an administration who favors weak-dollar policy to begin with.

Jeff Gundlach, who currently manages over $100B at DoubleLine Capital, said

“Gold is negatively correlated with the dollar. We see that gold broke above its downtrend line. But now we see a massive base building in gold. Massive. It’s a four-year, five-year base in gold. If we break above this resistance line one can expect gold to go up by, like, a thousand dollars.

Will it happen? Well it’s not happening right now but it’s a very interesting juncture. It’s a great time to be buying gold straddles. Because one way or the other this baby’s got to break in a big way.”

*  * *

ORIGINAL SOURCE: On My Radar: Mauldin Economics 2018 SIC (Part 3) – Jeffrey Gundlach, “Inflation is Inflationary” by Steve Blumenthal at CMG Wealth on 3/29/18