According to Portfolio Wealth Advisors President and CIO Lee Munson, gold is one of the last assets to rally amid fears of inflation. Apparently, investors rushed to buy the yellow metal because they are afraid of a crisis or hyperinflation. However, Munson said market players should not do this because gold could still rise to $ 2,200 even without a rate hike.

He reasoned that not all countries will end up experiencing hyperinflation with massive money printing. Hence, investors should look to the balance sheet, as it is what drives gold prices, not just inflation.

And right now, the US is printing massive amounts of money, which will continue until 2023. In addition, the Fed is firm on keeping interest rates low for a long time, until the economy reaches the central bank's target levels.

"Inflation is certainly a risk, but people are overreacting to the magnitude of real price pressures," Munson said.

Aside from that, it is rather evident that the US Treasury and the Federal Reserve are more concerned with deflation than inflation. They already said they want inflation to reach 2%.

Also, the expansion of the balance sheet may lead to hyperinflation, but it should not happen to the United States, as the Federal Reserve is unlikely to lose control.