Gold's Recent Pullback Is 'Very Good Opportunity' To Add Positions, Says Jeffrey Gundlach

DoubleLine Capital CEO Jeffrey Gundlach is calling the recent correction in precious metals a strategic entry point, urging investors to view the current “revaluation phase” as a chance to increase exposure.

A Strategic Reentry Point

Following a period of intense market volatility amid Iran-U.S. war, Gundlach, also known as the “Bond King,” believes the dust is settling in a way that favors gold bugs.

Despite a dramatic slide from recent highs near $5,500 down to the $4,400 level, Gundlach remains steadfast in his long-term thesis.

“At this level, I think it's a ‘very good opportunity' to add to gold and to add to commodities,” Gundlach stated in a recent CNBC interview.

He noted that while the market’s move to $5,500 actually exceeded his own aggressive forecasts from last year, the current retracement brings the metal back to a sustainable valuation.

Navigating The ‘Revaluation Phase'

The shift in gold prices comes as the broader market enters what Gundlach describes as a “revaluation phase.”

While risk assets and corporate credit have faced pressure—with high-yield spreads widening by nearly 70 basis points—gold has held its ground as a premier “safety place.”

Gundlach admitted that the market’s momentum previously outpaced his expectations. “My enthusiasm for gold was definitely exceeded last year by the market's actual action,” he remarked, referencing his previous $4,000 target.

“I was not enthusiastic enough, I guess, because it went up to almost 5,500.”

Shift Away From Credit

The billionaire investor's pivot toward gold is underscored by his growing caution regarding fixed income. While he sees stability in asset-backed and commercial mortgage-backed securities, he expressed a lack of “enthusiasm about credit” generally.

For Gundlach, the choice is clear: as corporate spreads march higher and institutional shorts face regret, the “long haul” play remains in tangible assets.

By framing the move from $5,500 peaks to $4,400 reality as a necessary cooling period, Gundlach reinforces that the fundamental bull case for gold is far from over.

At the last check, spot Gold prices were up 0.38% to $4,423.72 per ounce, down by 21.32% from its record high of $5,595.46. Here's a list of some ETFs tracking the spot gold price and gold miners.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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