Jeffrey Gundlach, known in financial circles as the “Bond King,” is sounding the alarm on long-term U.S. Treasuries—even as he predicts multiple interest rate cuts from the Federal Reserve. While many investors might see easier monetary policy as a green light for stocks, Gundlach is urging caution when it comes to bonds—and pointing toward gold as a smart place to be positioned.
At Harvard Gold Group, we agree with Gundlach’s read of the financial landscape: declining interest rates, a weakening U.S. dollar, and mounting government debt are creating the perfect storm for long-term bond weakness—and a strong backdrop for precious metals.
A Rally in Gold and Stocks, but Trouble Ahead for Bonds
In a recent CNBC interview, Gundlach, founder and CEO of DoubleLine Capital, explained why he expects rate cuts to be virtually certain this year. According to him, the bond market is already pricing in easing, with the 2-year Treasury yield sitting about 70 basis points below the Fed funds rate—a classic signal that the Fed is behind the curve.
Historically, as Gundlach notes, “the Fed always follows the 2-year.” That means investors can expect multiple rate cuts in the coming months—potentially three before the end of the year.
Lower rates typically boost stock valuations by reducing the discount rate on future earnings. Gundlach sees big moves up for gold and potential equity rallies, both in U.S. and international markets. But he tempers that optimism with a key warning: the U.S. dollar is poised to weaken, giving international equities an edge over domestic ones.
The Treasury Curve Is Set to Steepen
One of Gundlach’s key predictions is that the Treasury yield curve will steepen— meaning long-term yields will rise while short-term yields fall. The gap between 2-year and 30-year Treasuries currently stands at around 110 basis points, but Gundlach expects it to widen to 150 basis points.
Why? Because short-term yields are likely to drop as the Fed pivots toward easing, while rising fiscal deficits and falling tax revenues will require the government to issue more debt— especially on the short end. Add the investors reluctance to lock in low long-term yields amid inflationary uncertainty, and you have a recipe for higher long bond yields.
This is why Gundlach remains bearish on long-term bonds, despite his forecast for interest rate cuts.
Inflation, the Dollar, and Gold
Gundlach isn’t alarmed by near-term inflation readings. He reminds investors that tariffs and import costs may rise, but they don’t create inflation unless the money supply grows. As famed economist Milton Friedman once said, “Inflation is always and everywhere a monetary phenomenon.”
Gundlach points to the M2 money supply, which is not showing extreme expansion, and emphasizes that import/export price indexes remain near the Fed’s 2% inflation target. Still, he sees the declining dollar, combined with future monetary easing and rising debt issuance, as a fundamental concern for long-term dollar strength—and a bullish case for gold.
Gundlach’s Final Recommendation? Gold.
“If you’re long gold, you haven’t anything to worry about,” Gundlach advised.
We agree.
At Harvard Gold Group, we help clients move out of overexposed assets and into physical gold and silver— especially in times of monetary uncertainty. Whether you're rolling over a retirement account, inheriting generational wealth, or simply looking to hedge your portfolio from interest rate risk and a falling dollar, gold offers a time-tested alternative.
Why Investors Are Turning to Gold Now
Here’s why Gundlach— and many others— are increasingly recommending gold:
✅ Rate cuts reduce real returns on bonds
✅ The U.S. dollar is trending lower
✅ Geopolitical uncertainty and deficits are rising
✅ Gold has a 5,000-year history as real money
✅ Physical gold is a tangible asset, immune to digital risk and monetary manipulation
Protect Your Portfolio Today
At Harvard Gold Group, we offer personalized guidance to help you move your IRA, 401(k), or inherited IRA into a Self-Directed Gold IRA, or purchase physical gold and silver for direct delivery.
📞 Call us at (844) 977-4653
🌐 Visit www.harvardgoldgroup.com
📘 Request our Free Gold & Silver Investment Guide, no cost and no obligation.
