Gold analysis- 21/6/26

We are fundamentally bullish on gold. But we also give importance to technical analysis. Also we look for quarterly liquidity purges conducted by the market makers to get market participants out of the market. As you can see from the chart, we have already taken Q1 2026 LOW. Price then rallied hard and tested the Q1 2026 LOW. At this point we become bullish again. However the price rejected this area and has fallen.

Considering that we are very near to the next quarter, we think that price is likely to purge the Q4 2025 LOW next quarter before a rally. What we are expecting for a bullish bias is a purge of q4 2025 low followed by a strong clsoe back within the range. This suggests a purge and then we will become aggressive in our longs.

Also if price goes above the current daily high at $4350 and closes strongly above the Q1 2026 low, again gold becomes bullish on a technical basis.

In a previous post, we showcased the multiple divergences between gold, DXY and 10 year yield. The DXY was making lower low and gold was also making lower low. However, the DXY has now made a higher high and so that divergence has been invalidated. However the divergence between DXY and the 10 year yield still persists, which makes us believe that the DXY will likely top out soon. But we need price action to confirm our expectations and bias. That would mean that the DXY needs to close below 99.50.

Again analysis done in good faith and not investment advice.