Most gold sits in bank vaults to make governments feel good about themselves.  While it's true that India's use of the metal is on the increase for jewelry and decorative (temples etc) the tech side is also eyeing off gold for commercial applications in electronics due to its conductive properties.

People keep hording gold (and other base metals such as silver and platinum etc) for the inevitable Zombie Apocalypse, to trade but in the mean time, gold and BitCoins are very exclusively separate from each other and always will be.

Some people will buy Gold with BitCoins or the other way around, but they are too far apart from each other to be able to compare them except to compare their dollar value people are prepared to pay for them.