Jeffrey Gundlach, CEO of DoubleLine Capital, has reduced exposure to gold following the precious metal’s strong rally this year, and said it was time for investors to rebalance as prices rose to “nosebleed levels.” Gundlach had about $95 billion under management at the end of 2024 and recommended a 25% gold position in mid-September. Since then, the yellow metal briefly topped $4,400 an ounce, but fell to about $3,977 on Wednesday. “It’s been pretty good, but I can’t sustain it anymore. … Given these market movements, I want to seriously think about rebalancing,” Gundlach said on CNBC’s “Closing Bell.” @GC.1 YTD Mountain Gold Futures YTD Gundlach’s bullish call for gold was based in part on his belief that inflation will remain stubbornly high due to the impact of tariffs on import prices. Gundlach said he currently holds about 10% in gold and another 5% in broad commodity indexes. When it comes to equities, he said he generally prefers non-U.S. stocks, especially emerging market stocks denominated in local currencies, as overseas valuations are more attractive than in the U.S. market. “I still like owning emerging market stocks that are denominated in local dollars, and I really like non-U.S. stocks from a valuation standpoint,” he said. Gold prices are well off their highs after the Federal Reserve cut its benchmark overnight borrowing rate by a quarter of a percentage point on Wednesday, marking the second time in 2025 that the central bank has lowered borrowing costs. Federal Reserve Chairman Jerome Powell poured cold water on market expectations for further easing by the end of the year, saying further rate cuts at the Fed’s December meeting were “not a foregone conclusion.”
