Is Gold heading for a 12-year Cycle high?
#189 The impact of the London 1919 Gold Fixing Natal Chart on today's market.
Introduction
The history of trading gold dates back thousands of years, with evidence of gold being used as a form of currency and trade commodity in ancient civilizations such as the Egyptians, Greeks, and Romans. Gold has been a symbol of wealth and power throughout history, and its rarity and durability have made it a valuable asset for trade and investment.
In more recent history, the establishment of the gold standard in the 19th century formalized the use of gold as the basis for monetary systems, further solidifying its importance in global trade. The London gold market emerged as a pivotal hub for gold trading, with the Bank of England playing a significant role in shaping the market's structure and operations.
The London gold market, the most important in the world prior to the First World War, was closed during World War I. After the war, the Bank of England took steps to reopen the market to maintain London's status as a financial center. They negotiated with South African mining companies to ensure that a significant portion of the world's newly mined gold would be sold in London. The Bank also worked with N.M. Rothschild & Sons to establish the gold price and reopen the market for gold.
The Bank's efforts resulted in the establishment of the London Gold Fixing on September 12, 1919, setting a single price for gold transactions at around 11:00 a.m. on that day. Rothschilds settled on a reserve price of 98 shillings and 6 pence based on the dollar-sterling exchange rate of £1 = $4.17. This process remained the foundation of the London Gold Fixing for many years to come and occurs twice daily at 10:30 a.m. and 3:00 p.m.
Originally, the process took place face-to-face at the London offices of N. M. Rothschild & Sons, where representatives from leading bullion banks would agree on a price to buy and sell gold. In 2004, the process transitioned from telephone-based negotiations to an electronic platform, making it more efficient and accessible. Today, representatives from five prominent gold-trading institutions — Barclays, HSBC, ScotiaMocatta, Société Générale, and UBS — conduct the fixing process, setting the benchmark price for gold through this electronic platform.
During the fixing process, the representatives exchange information about their client's interests in buying and selling gold, including specific trade orders. With this information, they work to determine a price at which the supply and demand for gold are balanced, establishing the benchmark price for that moment.
The natal chart of the September 1919 gold fixing is significant because it marks the beginning of a benchmark price for gold transactions. This event established a standard that became a cornerstone of the global gold market. A process that still works today. The natal chart may provide insights into the astrological influences surrounding this pivotal moment, shedding light on the potential factors that contributed to the establishment of the gold fixing and its long-term impact on the market.
Gold is currently experiencing a strong bullish trend and is approaching an 8-year crest and nearly 12-year cycle high. In this analysis, I incorporated various astrological factors from the Gold-fix 1919 natal chart, as well as cycles, Gann timing lines, and trendlines, to provide an updated forecast for gold. This post introduces a monthly recurring cycle derived from the Gold 1919 natal chart that remains relevant today.