China’s Margin Crackdown Triggers Gold’s Sharp Reversal After Record Rally
Scott Bessent attributed gold's sudden collapse to China's regulatory intervention rather than fundamental demand shifts. The former Soros Fund Management CIO described the precious metal's parabolic MOVE as a "speculative blowoff" during a Fox News appearance, noting Chinese authorities tightened margin requirements to curb excessive leverage.
Gold's earlier rally reflected geopolitical tensions and doubts about Federal Reserve independence before Chinese regulators effectively pulled liquidity from overextended traders. The price drop represents a technical correction, not an economic signal.
Separately, Bessent urged Senate progress on Trump-era Fed nominee Kevin Warsh despite an ongoing DOJ investigation into Jerome Powell. North Carolina Senator Thom Tillis continues blocking confirmation hearings until the probe concludes.
