Talk about it here.

They're still experimenting with Goldust's look. Now he has a tophat. In this one, he's outside in Hollywood, possibly against a green screen, and teases a feud with the Undertaker.

You know they had big plans for Goldust from the start from the way he's calling out every top babyface. They did the same thing with Razor Ramon in '92.

It's telling that they didn't go with an Undertaker feud (I think they had a casket match in '96 but that's about it), but they put him up against mostly very macho faces as to enhance the "bizarre" (gay) aspects of the character.