"The New Bond King" Gundlach joins the bullish camp: The rising trend of gold is far from over, with potential to reach $4000.

"The new Bond King" and Chief Investment Officer and founder of DoubleLine Capital, Jeffrey Gundlach, stated that the record-breaking rise in gold prices is far from over; and he predicts that gold prices could climb to highs of $4000 per ounce. Gundlach said in an interview this week that fluctuations related to tariffs are fundamentally changing traders' views on gold, and he noted that gold prices have risen 25% so far this year. Gundlach said, "I think this tells us that gold is no longer a speculative tool for short-term traders, nor a long-term holding tool for survivalists. I think people are viewing gold as an asset class because they are concerned about geopolitical turmoil, tariffs, and all the existing debt, people want to know how we will deal with it. So gold is a true monetary asset." According to data from the World Gold Council, the global physical gold ETF market size expanded by $11 billion in April, reaching $397 billion. Meanwhile, in a recent survey by Bank of America, 58% of global fund managers stated that they believe gold is the safest asset in a full-blown trade war. Gundlach added that he believes other risky assets like stocks are currently facing challenges. He predicted a possible "crash" in the stock market with the S&P 500 index potentially dropping to a low of 4500 points, which would mean a 20% decrease from current levels. He said, "I think in the medium term, we are in a risk-off market." In recent months, other forecasters have also issued bullish calls on gold, citing uncertainty brought by Trump's trade policies. Goldman Sachs raised its gold price target to $3700 per ounce last month, citing high policy uncertainty and a potential slowdown in the US economy. UBS and Bank of America have also set target prices for gold at $3500.