Gold price is done falling

Gold last traded at $1,725 an ounce. Silver at $26.11 an ounce.

NEWS SUMMARY: Precious metal prices steadied Thursday amid upbeat jobs data and a weaker dollar. U.S. stocks rose led by the tech sector as investors chose to ignore inflation signals and rising interest rates.

GUNDLACH/KITCO--"Gold has been disappointing investors this year, but the precious metal's luck is about to change, at least according to DoubleLine CEO Jeffrey Gundlach.

'Gold went down to $1,681 on Monday on the close. That might be the low in gold for a while,' Gundlach said in a webinar....'Long-term gold is pretty interesting. Our model shows that gold is at fair value at $1,761,' he said. 'We don't think the decline in gold is likely to continue.'....

Gundlach pointed out that he is also bullish on commodities and negative on the dollar in the long term.

Inflation was another key topic covered by the webinar, with Gundlach saying that the headline inflation will breach 3% this summer and remain above that level for a few months.

'The Fed chooses to be unconcerned about a period of time with inflation running above 3%,' Gundlach said. 'In my opinion, not only are they unconcerned, they welcome inflation being higher than interest rates. They like negative interest rates because they know that negative interest rates help to forestall the incredible deficit and unfunded liability problems the United States has'

There is even a chance that inflation could rise to 4%, which would 'really spook' the bond market. 'One could actually plausibly predict that headline CPI could go over 4% at some point in about four months from now,' he added."