It looks like your issue is the name of your taxonomy has a capital letter, the first argument of register_taxonomy is to be all lowercase, no spaces as the documentation for the register_taxonomy function mentions here.
Change your code to the following and your taxonomy-gallery.php template will work correctly.
register_taxonomy( 'gallery', array( 'photo' ), array( 'hierarchical' => true, 'label' => 'Galleries', 'singular_label' => 'Gallery', 'rewrite' => true ) );
In the first bit of code you posted, you will also want to change the reference to the gallery taxonomy to be lowercase as well. Labels are fine with any case, but not actual names of taxonomies.
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