NEW YORK ( TheStreet) -- If Janet Yellen is the next chairwoman of the Federal Reserve, what does it mean for gold prices?
Nothing, according to ETF Securities' Mike McGlone. He told TheStreet's Joe Deaux that the market largely expected Yellen to be named the next head of the Fed and that we should simply move on to other issues now.
With gold prices moving lower on Wednesday, McGlone attributed it mostly to speculators. But the closer we get to the debt ceiling without a resolution, the better gold prices should fare.
He added that, historically, gold has a high correlation to the debt-to-GDP ratio. Assuming the debt continues to climb, gold should, too.McGlone suggested gold traders are just trying to find a bottom. As prices get lower, market participants are interested to see if strong physical demand picks up for the precious metal. With gold near its lows and equities near the highs, he concluded that it seems advantageous to be long the yellow metal at this point. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell