I agree that the gold price spike in Sterling can't go on forever (it would be unnatural). One should not buy in such a period really. Much better to buy on dips or in sideway periods (which we had over many many months). However, this is psychologically difficult for some people.
Regarding the deflation bit, I disagree. I fear a supply shock and price shock at the same time. So, inflation might come back big time. If not, take it as an opportunity and buy gold on the cheap should the price dip substantially, because the fundamentals are in place and it's only a matter of time for them to rule.