Gold – Still One of Wall Street’s Highest Conviction TradesGold / U.S. DollarFOREXCOM:XAUUSDWSICapitalGold – Still One of Wall Street’s Highest Conviction Trades Almost every major Wall Street bank currently lists long Gold as one of their strongest conviction calls – and the reasoning makes sense. There are three fundamental drivers that continue to support the bullish case: I. Persistent U.S. Inflation → Gold remains in strong demand as a hedge. II. Potential Fed Rate Cuts → Likely USD weakness could further lift Gold due to its negative correlation. III. Reserve Diversification → A gradual shift towards Gold as a USD alternative in global central bank and hedge fund portfolios. I’m not typically a trend trader, nor do I trade Gold frequently (my focus is mean reversion in FX), but I do find these arguments compelling. From a tactical perspective, I wouldn’t chase the current highs. Price recently broke out of a triangle formation, and the Williams %R is at levels that historically preceded pullbacks. If I had to establish exposure, I’d prefer to wait for a retracement into the 38.2%–61.8% Fibonacci zone, scaling in gradually with multiple small longs. To be clear – I don’t see an attractive short setup here. But patience may offer better risk–reward on the long side. What’s your view? Do you agree with the fundamental case, or do you see a different setup? Stay safe & happy trading, Meikel