Markets are having trust issues, DoubleLine Capital CEO Jeffrey Gundlach said Friday.
"What I think is happening … is there is a bear market in confidence in market manipulators, central bankers and politicians broadly," Gundlach told CNBC's "Power Lunch." "And I think there's a bear market in confidence in planning. That's why I've been long gold and gold miners all year."
Several central banks, including the European Central Bank and the Bank of Japan, have recently tried to jump-start their economies by implementing creative monetary policies, such as negative interest rates, but have failed to do so.
Year to date, most major European stock indexes were down at least 10 percent, while Japan's Nikkei 225 has shed 21.4 percent.
"Gold is a play in a bear market in confidence," Gundlach said.