3 weeks ago
18
Treasury Secretary Scott Bessent cited Chinese traders as a reason behind last week’s wild swings in the gold market.
“The gold move thing — things have gotten a little unruly in China,” Bessent said on Fox News’ Sunday Morning Futures. “They’re having to tighten margin requirements. So gold looks to me kind of like a classical, speculative blowoff.”
Bessent was responding to a question about a record-breaking rally in precious metals — fueled by speculative buying, geopolitical turmoil and concern about the Federal Reserve’s independence — that abruptly reversed last week.
The turmoil helped lift the dollar to its first weekly gain since early January while the Dow Jones Industrial Average topped 50,000 for the first time, reflecting investor optimism about the US economy and corporate earnings.
With midterm elections coming in November, Bessent cited the Dow Jones record as evidence the US economy is headed for an upward cycle that will benefit ordinary Americans.
On Federal Reserve policy, Bessent said he expects the central bank to move cautiously in any effort to trim its balance sheet.
“I wouldn’t expect th...
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