How gold may glitter again

The strategist notes, however, that his position on gold does not mean abandoning the firm's preference for AI, cyclical exposure and a broader constructive equity view. But rather, it is about "adding exposures whose return drivers are different."

Weisberger cites the firm's chief commodity strategist, Roukaya Ibrahim, saying that the worst of the downturn may be over with the potential now for significant near-term upside due to intersecting macro trends.

The research firm sees a possible growth scare that weighs on real rates as a supporting factor. While oil is pulling back on Monday, the firm referenced a recent oil price spike, saying that higher oil prices could begin to weigh on economic activity, and be interpreted by the market as a negative growth shock that lowers real rates. Lower rates would support gold prices.

They also note that "inflation becomes a tailwind for gold primarily when Fed credibility is also in question." And while Federal Reserve Chair Kevin Warsh has "talked tough about his desire to return inflation to its 2% target," the strategist notes that the FOMC’s decision last week to keep rates steady "caused the market to question the Fed’s will to fight inflation."