Dollar Strength Dooming Gold, Low Bond Yields Not Enough

Gold has performed well against the Euro and Yen, yet strength in the U.S. dollar will continue to hold it down, said Michael McGlone, Director of Research for ETF Securities. McGlone said the weaker-than-expected August jobs number did not have an impact on gold because it was widely considered an outlier, adding that continued job weakness or a selloff in stocks would be a catalyst to move the yellow metal higher. Still, McGlone said low sovereign debt yields are long-term bullish for gold so it has a strong base at $1200 per ounce. Finally, McGlone said he expects grain prices to plummet as farmers increase their yields substantially due to technology.