We report here detailed in situ studies of nucleation and growth of Au on CdSe/CdS nanorods using synchrotron SAXS technique and time-resolved spectroscopy. We examine structural and optical properties of CdSe/CdS/Au heterostructures formed under UV illumination. We compare the results for CdSe/CdS/Au heterostructures with the results of control experiments on CdSe/CdS nanorods exposed to gold precursor under conditions when no such heterostructures are formed (no UV illumination). Our data indicate similar photoluminescence (PL) quenching and PL decay profiles in both types of samples. Via transient absorption and PL, we show that such behavior is consistent with rapid (faster than 3 ps) hole trapping by gold-sulfur sites at the surface of semiconductor nanoparticles. This dominant process was overlooked in previous end-point studies on semiconductor/metal heterostructures.