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Gold’s Sharp Collapse Tied to Chinese Leveraged Speculation, Says Bessent

Gold’s Sharp Collapse Tied to Chinese Leveraged Speculation, Says Bessent

Author:

Global Cryptocurrency

Published:

2026-02-09 09:25:02

17

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BTCCSquare news:

Gold prices plunged abruptly after hitting historic highs, catching investors off guard. Scott Bessent, former Soros Fund strategist and current US Treasury advisor, pinpointed Leveraged Chinese traders as the catalyst. He described the event as a 'speculative blow-off'—a frenzy of margin-fueled trading followed by violent liquidation.

Bessent dismissed fundamental drivers, emphasizing this was purely a technical reckoning. Chinese markets' margin requirement tightening forced rapid unwinding of positions, exacerbating the drop. The episode underscores how speculative leverage can distort even the most stable asset classes.

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