DoubleLine's Gundlach: gold remains best investment in 'shaky' world | Reuters

NEW YORK Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Wednesday that gold remains the best investment amid fears of instability in the European Union and prolonged global stagnation, as well as concerns over the effectiveness of central bank policies.

“Things are shaky and feeling dangerous,” Gundlach said in a telephone interview. “I am not selling gold.”

Gold hit more than two-year highs on Wednesday as some bond yields slid to record lows in the wake of Britain's vote to leave the European Union, prompting investors to buy bullion as a haven from risk. Spot gold XAU=, which is up almost 30 percent so far this year, was up 0.56 percent at $1,363 per ounce at 2:34 p.m. EDT (1834 GMT)

Gundlach, who has been a staunch supporter of the precious metal and sees gold rising to $1400 an ounce this year, said gold bullion and gold-related stocks are attractive relative to government bonds, which have been hitting record low yields in recent days. The yield on the 10-year Treasury note hit a session high on Wednesday of 1.393 percent after its earlier record low of 1.321 percent.

"You're seeing people who hated the '2 percent' 10-year suddenly loving it at a 1.38-1.39 percent revisit of the all-time low closing yield," Gundlach said.

"If you buy 10-year Treasuries now, I would say, it is a terrible trade location. In fact, it is the worst trade location in the history of the 10-year Treasury."

(Reporting By Jennifer Ablan; Editing by Bernard Orr and Diane Craft)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jul 07, 2016 01:00 AM

Also Watch

It's A Wrap: Omerta star Rajkummar Rao in conversation with Parul Sharma
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Thursday, April 19, 2018 Watch: National-level skater and coach Dhwanit Rele trains and nurtures budding athletes
  • Monday, May 14, 2018 FOMO Episode 1: Google Assistant, This is America, Sonam's wedding & Global Warming
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See