"Golden faith" never dies! Short-term selling cannot conceal the underlying bull market colors, as Wall Street plays a symphony of new record high gold prices.

Several Wall Street financial giants, including Citigroup, JPMorgan Chase, ANZ Bank, and Goldman Sachs, have expressed their belief that despite the recent Middle East geopolitical crisis causing inflation to spike and concerns of stagflation sweeping through the market, disrupting expectations of interest rate cuts, gold still has the potential for a significant rebound to new highs in the long term. According to some senior analysts on Wall Street who are bullish on gold in the long term, the current price trajectory of gold resembles a recovery pattern of a "long-term bull market logic not broken and bulls regaining pricing power after a deep short-term retracement." They emphasize that currency devaluation post-geopolitical conflicts, long-term inflation risks, and increasing fiscal deficit pressures are still favorable for gold in the long term. Wall Street analysts generally believe that the resilience of demand for gold by central banks including the People's Bank of China and others, persistent geopolitical uncertainties, expectations of a return to cutting interest rates by the Federal Reserve, and diversification of funds from US dollar-denominated assets amid fiscal deficit challenges in developed markets are all core reasons supporting the bullish long-term outlook for gold. Since the outbreak of the Middle East conflict in February, the spot price of gold has dropped by nearly 10% from its record high of over $5500 per ounce in January. Continued rise in US bond yields, strength in the US dollar amid expectations of Fed rate cuts being dashed, along with associated volatility from the conflict, have led some investors to increase their cash holdings. However, analysts predict that gold prices will eventually make a significant recovery. Particularly as the macroeconomic classic combination of economic growth and inflation continues to deteriorate, paving the way for central banks around the world to resume cutting interest rates, gold prices are expected to rise significantly. While gold may continue to be pressured in the short term due to liquidity shocks, speculative unwindings, rising real interest rates, and swinging policy expectations, the long-term bullish logic remains intact, with conditions for a resurgence and potentially challenging new highs over the next 12 months. On one hand, the fact that gold did not immediately play its traditional safe haven role at the onset of the crisis does not mean its safe-haven attributes have failed; rather, gold is often initially sold as a liquid asset during market panics to meet additional margin and cash requirements. On the other hand, the current pullback displays clear technical and positional features: gold prices, ETF holdings, and market sentiment were all at historical highs, making it easier post-conflict outbreak for a liquidity-driven retracement focusing on valuation and deleveraging. The long-term bullish logic for gold prices remains very strong! Will gold stabilizing at $4700 set the stage for a new bull market? Gold currently appears to be in a tactical retracement within a bull market triggered by liquidity, interest rates, and positioning, rather than a reversal of the long-term upward logic. The structural forces supporting gold to reignite upward momentum remain solid: central banks continu...