when will the short covering start

You have to think the market is fairly short SLR here. Selling may have stalled today on a higher gold price. I suspect we will start seeing the AUD slide quite a bit lower soon as well on the back of the dumping of the iron ore price. This should mean we see a higher AUD gold price in the coming days / weeks, all adds up for a bigger margin for Aussie producers for the likes of SLR & others.

I suspect we will see quite a sharp bounce sooner rather than later as long as the POG holds up.