Seeking Alpha

Gundlach bets on gold, as recession risk rises

|About: VelocityShares 3x Long Gold... (UGLD)|By:, SA News Editor

DoubleLine CEO Jeffrey Gundlach, also known as the "bond king", sees a 40%-45% chance of recession in the next six months rising to 65% change in the next 12 months, he told investors on a webcast after Thursday's close.

He's long on gold, on the basis that he sees the dollar ending the year lower.

Gold rises 0.6% to $1,351.50 per ounce; VelocityShares 3x Long Gold ETN (UGLD +1.5%).

Several indicators are flashing red; specifically the spread between consumer confidence expectations and current conditions is near an all-time low.

As he as in the past, Gundlach warns that the "soaring" U.S. deficit could get much worse in the next recession.

Gold ETFs: UGLD, UGL, DGP, GLL, DZZ, DGL, DGLD, DGZ, GLDW, UBG, OTC:IAUF

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