May 9, 2012 - Market reflection
"The political scramble in Greece, which points squarely at another election next month, is posing an increasing threat to the stability of Europe. The Dow fell another 3/4 of a percent to 12,835. The euro is back under $1.3000, down 1/2 percent on the day to $1.2940. Oil fell another $1 and is at $96.50 while gold fell another $20 to $1,590."
It is interesting that gold fell another $20 along with oil. It doesn't look like gold has any power countering deflation. It is only useful when inflation expectation rises.
If not served as money or centrl bank asset, the yellow metal almost has no pratical use.