Gundlach Predicts Gold Surge to $4,000 Amid Inflation Fears

Gold-Backed Tokens Outperform as Bond King Gundlach Sees Precious Metal Hitting $4,000

March 17, 2025 - A surge in gold-backed tokens has seen the digital assets outperforming traditional gold investments, according to data from cryptocurrency exchanges. The rise of gold-backed tokens comes as renowned bond guru, Jeffrey Gundlach, predicts that the price of gold will hit $4,000 per ounce in the coming months.

Gundlach, the founder of DoubleLine Capital, made the bold prediction in an interview with CNBC earlier this week, stating that the rising tensions between the US and China, as well as the ongoing economic uncertainty, will drive gold prices higher. Gundlach's prediction has sparked a wave of interest in gold-backed tokens, which allow investors to buy and sell digital assets pegged to the value of physical gold.

According to data from cryptocurrency exchange, Binance, the value of gold-backed tokens has risen by over 20% in the past week alone, outperforming traditional gold investments. The surge in demand has seen the price of gold-backed tokens reaching new highs, with some tokens trading at a premium to the spot price of gold.

The rise of gold-backed tokens has been driven by a combination of factors, including the increasing popularity of cryptocurrencies, the growing demand for alternative investments, and the perceived safety of gold as a store of value. The tokens are typically backed by physical gold held in secure storage facilities, providing investors with a tangible asset that is not subject to the same market risks as traditional cryptocurrencies.

While some investors have been skeptical about the value of gold-backed tokens, others see them as a way to gain exposure to the precious metal without having to physically hold it. With Gundlach's prediction of a $4,000 gold price on the horizon, it remains to be seen whether gold-backed tokens will continue to outperform in the coming months.