DoubleLine Capital CEO Jeffrey Gundlach said Wednesday he’s warming up to commodities, while doubling down on foreign investments amid dollar weakness. The widely followed investor said he recently shifted positive on broad commodities, pointing to a steady, largely overlooked rally in the asset class. “Commodities broadly have quietly started to rise,” Gundlach said. “For the first time in a long time, I turned positive on commodities broadly last week. So I think a commodity index makes some sense in here.” His comments came after the Federal Reserve on Wednesday lowered its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%. It marked the central bank’s third rate cut this year. For gold specifically, Gundlach said it still deserves a place in portfolios. Gundlach, whose firm managed about $95 billion at the end of 2024, had recommended a 25% gold position in mid-September and then dialed back his allocation in late October. Gundlach’s renewed commodities call is tied to his expectation for a softer dollar. He said he believes President Donald Trump is likely to appoint a dovish Federal Reserve chair , who would favor lower interest rates. That outcome would steepen the yield curve and weigh on the greenback, he said. That could bolster the case for non-U.S. assets, particularly emerging-market fixed income, which he said has already been a strong performer this year. “You should be increasing investments in non-dollar assets,” Gundlach said. “I think this is early innings for the outperformance of non-dollar investments relative to dollar investments.”
