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    Jeff Gundlach expects gold to surpass $4,000 by year-end due to recent price increases.

    by VT Markets
    /
    Sep 17, 2025
    **Gold’s Historic Rise** Gold’s value has gone up as the US dollar has decreased. This change reflects larger financial trends and expectations about US policies. Gundlach discussed how Federal Reserve chair candidates are chosen, suggesting that their alignment with the government’s goals is important. This has further boosted gold’s price as political factors impact financial markets. **Year-End Gold Strategy** With strong momentum, we expect gold to reach $4,000 by the end of the year. So far in 2025, gold has gained 45%, and the reasons behind this growth remain strong. Buying December call options is the best way to invest in this anticipated increase. This positive outlook comes from a weakening US dollar and ongoing inflation. Recently, the Dollar Index (DXY) dropped to 89.5, a four-year low, while inflation in August held steady at 4.8%. Since the Fed has hinted at pausing further rate hikes, there are few obstacles to gold’s rise. However, the current rally’s “ridiculous” nature, along with a surge of retail investors, suggests high volatility and the risk of sudden drops. This makes options expensive, which is why we should think about using bull call spreads. This approach lowers the initial cost and helps manage risk, allowing us to take advantage of price increases while protecting against unexpected declines. We have seen a similar pattern before, especially during the inflationary period of the late 1970s. The rapid rise from the lows of 2023 to now closely resembles that historical trend. It’s a reminder that political influences on monetary policy can drive long-lasting and powerful commodity trends. In the coming weeks, we should aim to reach our year-end target. We can focus on acquiring contracts for the $3900 or $4000 options for December. Waiting for a small dip or a consolidation period would be the ideal time to enter before the final surge up. Create your live VT Markets account and start trading now.

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