Nitesh Shah, head of commodities at WisdomTree Europe, says in this cycle gold hasn't quite lived up to its reputation as an inflation hedge, as inflation heads towards 30-year highs in the US, while gold prices are not quite where we would expect them to be. 

Shah told IG’s Daniela Sabin Hathorn that according to the new models he’s produced, gold should be trading in excess of $2,000 per oz, with inflation at 6.2% in the US, but rather it’s around the $1,795 level. He says when looking at what should be driving gold prices versus what is actually driving them, most aspects seem to be moving gold in the right direction apart from the inflation component.

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