Gold has been in a strong race, exceeding $ 3,000 for the first time last week, and now there are even more upward calls for precious metal prices.
Jeffrey Gundlach, CEO of Doubleline capital and colloquially known as the “King of Bondes” for his experience in fixed income markets, believes that the demonstration is far from finishing and could see the precious metal of the $ 4,000.
Speaking during a macroeconomic presentation of Outlook entitled “Not in my neighborhood,” Gundlach highlighted Gold’s sustained price impulse along with other products. Cryptocurrencies backed by precious metal, including Paxg and Xaut, have benefited from their historical price increase.
“I think Gold will reach $ 4,000. I am not sure that this happens this year, but I feel that this is the measured movement anticipated by the long consolidation of around $ 1,800 in gold, ”Gundlach said.
Cryptocurrencies backed by gold have surpassed the wider cryptocurrency market so far this year. While Paxg and Xaut rose approximately 14% in the year they will be reduced, Bitcoin fell 11.4% during the same period, and the largest Coindesk20 index withdrew by more than 25% in the same period. The Golden ETFs last week have exceeded the Bitcoin ETFs in assets under administration.
Its prediction is based on the change of strategies of the Central Bank. World Central Banks have increased their gold reserves, reversing a period in which their holdings were decreasing. The total amount of gold was maintained worldwide, according to IMF data that Gundlach presented, has risen from a minimum of around 34 billion special drawing rights (SDR) in 2010 to 40.9 billion SDR, reaching levels seen for the last time between 1975 and 1980.
Special drawing rights are an international reserve asset that the IMF created in 1969, defined through a coin basket.
