From Tolkien Gateway

Tolkien explicitly stated that it was in origin a Dwarven name. Since we also have "Felagund" from Kh.: "felak-gundu" or hewer of caves, the "Gunda-" part of the name must refer to the caves within it.

I'm sure someone ought to be able to nail the name completely.

--Osric 12:38, 14 November 2006 (EST)

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