Interest rates went up today and gold fell back a little. You shouldn't pay much attention to one-day moves as the markets can be volatile. However, if rising interest rates were to become a trend, then you should start moving more of your investments toward gold, gold related investments, and other inflation hedges. For the record, I think you should always have some of your investments in gold and other inflation hedges. You should always keep at least 15% in your portfolio, but even more in times like this.
Gold has been hanging around its all-time high lately, but I've said that for gold to really explode, there has to be more fears of inflation. With interest rates so incredibly low, it shows that there is fear out there, but the fear has little to do with inflation right now. If rates start going up, this will show that the bond market is starting to get concerned about future inflation. Bond holders want higher rates to compensate for the risk of being paid back in depreciated dollars.
Don't pay too much attention to short-term moves, but if you see a trend that rates are going up, then look for at least the possibility of gold moving much higher. We need to see an explosion of higher interest rates before we see another explosion in the price of gold.