I have to agree that the trade looks very one sided at this point and I have been expecting a bounce in the US dollar too.

My strategy is to be long gold in Canadian dollars. If there is a bounce both gold and the C$ should go down together and the C$ probably faster.

Important to note that gold has not made a new high in $CDN, Euros, etc. This is primarily a $US phenomena, insofar as the US is leading the pack on debasing its currency. An early sign of a turn here could be the $AUS. That's two rate hikes in a row, which suggests change at the margin. If rates start to rise in other currencies, the US will have to keep pace - not bullish for gold I'd say.

Gold needs a rest but I don't think the bull market is over yet.

Nor I. This is one of those generational bulls and as such there's plenty of room for backing and filling without breaking trend. Like everything else that moves these days, traders pile on and take it to extremes, like we saw with oil. As for some new global gold backed currency emerging out of this mess, I just don't see it. Not yet anyway. Central banks are still in control, and inflation is still their "management tool" of choice. They won't give that up without one hell of a fight.

ebear