Foreign capital is pouring into dollars, driving the dollar price of gold down as the value of the dollar increases.
We are not sure how far gold will plunge following this recent rally. If geopolitical events go as we expect them to following the Trump inauguration, we do not think it all that unlikely gold might return to the 600's per ounce. We would not place a bet on it today, we will let price action tell us what to do. See the monthly chart in the Related Ideas, which we posted for tracking purposes (and maybe bragging rights later, we'll see).
Always trade within your risk tolerance, and my analysis is not trading advice nor a recommendation to buy or sell any financial instrument.