Dollar was very undervalued. Now it became overvalued, but this is different story.

I agree the public were not in gold, but they were in other anti-dollar - EUR, GBP, Oil...

What we see is a correction, also is not impossible dollar, oil and gold to raise at the same time (just EUR and GBP - down).

Also, I believe, the USD carry trade is unwinding (USD carry trade means borrow dollar @ 4-5%, it will go down anyway). Also we have de-leveraging, and speculators go long USD.