As far as I'm aware it's being used up in jewellery and electronics at a faster rate than it's being mined. Therefore, like oil (which is in a similar position re: use vs new production) it's attracting a scarcity bonus.
Look at how the futures markets see it:
Industrial metals like copper and aluminium fall in value as you look forward to 2011.
Yet gold, which the anti-gold investors state is simply another metal rather than a semi-currency, is being sold forward to 2011 for over $800.
Seems reasonably bullish to me.
Also, I'd have to say your facts are faulty: gold hasn't tracked inflation.
From 1980 to 2000, gold was flat, even though the value of money collapsed so much that $10 in 2000 would only buy what $3 would get in 1980.
It broke out of that negative trading range after it hit rock bottom in 1999.
The theory is that central banks spent the period 1980-1995 basically dumping gold on to the private market, to decouple paper currency values from gold reserves, thus allowing paper currency values to appreciate without having to mine and refine gold.
Incidentally, the annual average price of gold in 1980 was $612, so if you like, gold has just reached its all-time high, as the 52-week average is above $620.
I think the futures markets are underestimating gold's likely 2011 value, and that $1000 is a more realistic measure, but $1800 would be a reasonable inflation adjustment.
However, it's likely that tons of investors like me will take their profits at the 1K mark and thus slow the upward move.
Some people will come out of this property boom very rich indeed, as they will have sold, luckily or cleverly, at the right time.
I think they'll want a little gold to put that dosh in.