Billionaire Sees a “Much Higher” Gold: What Does it Mean for Bitcoin?

RhIQPswI 980x580

A bullish alert for gold from a billionaire bond investor has left Bitcoin in a similar upside spell. Jeffrey Gundlach, the chief executive of $135 billion DoubleLine Capital, said during a webcast on Tuesday that he expects the gold price to go much higher. He explained that the precious metal is reacting positively to a weaker US dollar index (DXY), an index that measures the greenback against a basket of foreign currencies. US Dollar Index chart by shows DXY’s decline since March 2020 DXY fell by more than 10 percent from its yearly high of March 2020. Its plunge coincided with a rally in the gold market, signaling that investors sought hedge in high-yielding safe havens. The period also saw Bitcoin rising by more than 200 percent, a move that had it establish a year-to-date high above $12,000 last week. Mr. Gundlach blamed the US budget deficit that grew…

Read the original article here