The reason that will probably be given is the Institute for Supply Management Services Index came in this morning at 59.9 vs. consensus estimates of 63 and last month's report of 65.2. That coupled with a weaker than expected jobs number on Friday is not indicative of a strong economy. And if gold is going to go up because of inflation, you would expect stronger economic numbers than that.
Of course, the real reason it’s going down is anybody’s guess.