Trading the Negative Gold Skew
Source: Seeking Alpha, Surly Trader (2/10/10)
"Gold has usually traded with a positive option implied volatility skew. . ."
Options with lower strikes are now trading at higher implied volatilities than options with upper strikes.
If your view is still negative on the dollar, this means that a purchased call has gotten cheaper relative to a put. A good strategy in this situation would be to sell out of the money puts and buy calls on gold to take advantage of the negative skew. If this strategy confuses you, make sure to learn how to trade options efficiently.