Gold is not a hedge against inflation or deflation.

It is a hedge against government stupidity.

It is going higher regardless of inflation or deflation as the one thing the world has an abundance of at the moment is government stupidity. It is all about money flows and when governments lose trust money flows from governmnet (paper) to the private sector (gold etc).

The current weakness in the PM's is just about over and is the usual third Friday of the month fleecing on the CRIMEX.