Some pundits claim that Dollar strength is responsible for Gold's weakness. I don't agree. The following chart shows that the US Dollar has been moving sideways during the last months, but Gold is clearly in a downtrend:
Gold trending down while US Dollar moves sideways
The other reason is sentiment: take a look at Finviz and you'll see a lot of bullish comments.
Examples:
Too many bulls for me. So here is my take why investors are obviously dumping the metal: everybody is talking about investment money moving from bonds to equities. What if it is actually moving from Gold to stocks as well?
