Gold prices settled with a loss Monday, down less than 1% amid a strengthening dollar. But it won’t last if the prediction from Erik Swarts of the Market Anthropology blog comes true. “While we had liked the position in either scenario because we felt the dollar and real yields already reflected lofty expectation to more contemporary tightening cycles,” he said, “the news cleared the way for gold to stretch its legs in a market environment that should broadly support the reversal.” This chart, which was included in Monday’s “Need to Know” column, shows the relationship between yields and the inverse price of gold GCZ5, -0.02% With the Fed standing pat on interest rates, Swarts said he expects a weakening dollar to pull real yields lower, which will light a fire under gold. He also included this chart overlay, which puts gold’s performance during the dot-com days up against what we’re seeing right now. “In the wake of the September pass, the similar performance pattern that we’ve followed throughout the year with gold’s secular low in 1999, appears to have successfully retested the lows from this summer and is now climbing the stairs out of the basement on the wings of less hawkish expectations,” Swarts wrote. More from MarketWatch