The Bond King Jeffrey Gundlach states: “gold prices will rise 30%”

Gold prices emerged from their lethargy with the arrival of 2016 reaching a record in a matter of days.

The gold market can be truly unpredictable, but there are many forecasts of experts to read and use. Today, we will focus on Jeffrey Gundlach's theory of a 30% rise. How could that be possible?

Jeffrey Gundlach is the founder and head of DoubleLine Capital, nicknamed the 'Bond King', whose market predictions leave little room for error, helping many invest at the right moments. What is his forecast now?

Let us start at the beginning. According to Gundlach, gold prices could reach $1,400 per ounce - a 30% growth in comparison to the level of $1,092 per ounce reached on January 14. What has led the expert to that conclusion? The expert believes, as well as renowned market analyst Rob McEwen, that gold prices have reached its lowest levels and the only way is up.

Markets go down, gold goes up

Gundlach pointed out 4 main market trends which foster price growth:

1) The world economy is down. Average people have no confidence in their future and try to save money while investors look for safe-haven assets.

2) The Chinese economy is unstable, leading the expert to forecast one more yuan devaluation.

3) The US markets are a “stealth bear”, as stocks fell by 20%.

4) In Japan there is also a downward trend. Gundlach mentioned that he personally wouldn't invest money there.

This uncertain economic situation is favorable for a gold price growth. In such moments people seek for ways to protect their money and investors turn to safe-haven asset such as gold. Gold has always been a reliable protection against economic upheavals.

Listen to the experts' opinions and take right decisions when buying gold!

Read more articles on gold business: Evolutionary approach to gold mining by Rob McEwen and Global InterGold experts opinion