The most salient observation we can discuss about the enclosed daily chart of the Dollar Index vs. spot Gold is that since the May-June 2014 time period, both the DXY and Gold have strengthened, which is unusual.
Historically, Gold has not fared well when the US Dollar climbs significantly, in this case +2.7% off of its May 8 low, while Gold has managed to appreciate by 5.9% since its June 3 low.
DXY also appears to have broken, but of a near one-year accumulation pattern that projects higher prices into the 83.10/40 target zone.
For Gold to withstand such DXY headwinds, my suspicion is that demand for precious metals will have to spike in reaction to some destabilizing-geopolitical event (inflation is a much less likely determinant).
Otherwise, given the prospects for a higher Dollar, spot Gold could find itself under siege again some time in the near future, and especially if it breaks $1280.