Lou1985 is exactly right, a smooth finish matters a lot more than simple gloss. You can have a glossy coat full of orange peel and the decal will look terrible. The finish on your model looks very smooth, you're probably not going to get a better finish than that. Apply the decal, then let it dry, then give it another application of Micro-Sol, wait for that to dry, then do it again. You'll find that each application thins the decal a little bit more, until the film all but disappears, even on semi-gloss surfaces. Follow it up with your clear coat of choice to seal. That's what I did on this N scale 2-6-0, it was not very glossy, but the paint was smooth to begin with.
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