DoubleLine Capital CEO Jeffrey Gundlach is dialing back his exposure to gold after the precious metal’s powerful run this year, saying it’s time for investors to rebalance as the price climbs to “nosebleed levels.” Gundlach, whose firm managed about $95 billion at the end of 2024, had recommended a 25% gold position in mid-September. Since then, the yellow metal topped $4,400 an ounce at one point before falling to about $3,977 Wednesday. “It worked out pretty well, but I don’t hold that any longer. .. with all these market moves, you really want to think about rebalancing,” Gundlach said on CNBC’s ” Closing Bell. ” “Rebalancing is a very powerful tool. You want to take things that are at nosebleed levels — like gold was a couple of weeks ago — and trim them back.” @GC.1 YTD mountain Gold futures YTD Gundlach’s bullish gold call was partly based on his belief that inflation would stay stubbornly elevated because of the impact of tariffs on import prices. Gundlach said he now holds about 10% in gold and another 5% in a broad commodity index. For equities, he said he prefers non-U.S. stocks generally and emerging-market stocks specifically, particularly denominated in local currencies, citing more attractive valuations abroad than in U.S. markets. “I still like having some local-dollar emerging-market equities, and I like non-U.S. equities from a valuation perspective quite a lot,” he said. Gold prices were well off their highs after the Fed lowered its benchmark overnight borrowing rate by a quarter percentage point Wednesday, marking the second time in 2025 that the central bank lowered borrowing costs. Fed Chair Jerome Powell poured cold water on market expectations for further easing before the end of the year, saying another rate cut at the central bank’s December meeting is “not a foregone conclusion.”
DoubleLine’s Gundlach cuts gold exposure to 10% after ‘nosebleed’ rally