You think Gold is about to break out.
Do you expect the Euro to weaken?
Regarding your question, if we get deflation, as is potentially being indicated by the divergence between the market and bonds (bonds in rally mode and pricing in preservation of capital over a return on capital), then the dollar will rally. Gold may or may not sell off, as gold is a wily beast that moves more or less for different reasons at different times. I've solved that gold problem by holding it always, as I have since 2003/2004.
I think the odds are good that if the Euro has topped at 1.326 (which is within the expected target of 1.31 to 1.33 on a breakout of 1.25), then the sell Euro buy Gold trade may be back on. Or, deflation scares gold for a little while and gold bases or sells off a bit as it waits for confirmation of overt QE2.