Why did gold prices fluctuate sharply last week? Scott Bessant says ‘things are getting a little unruly in China’

Bessant made the remarks in response to a question about gold’s sudden fluctuations.

In an interview with Fox News, Bessant pointed to China’s trade conditions as a key factor behind the turmoil. “The gold movement thing — it’s become a little unruly in China,” Bessant said. “They had to tighten margin requirements. So, it looks to me like gold is kind of like a classic speculative plunge.”

His comments came after gold prices soared to record highs before suddenly retreating, unnerving investors who typically view gold as a safe-haven asset. According to Bloomberg, volatility has been fueled by speculative buying, geopolitical tensions and growing concerns about the Fed’s independence.

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The rapid decline in prices suggests that leveraged trading and margin activity may amplify price movements.

Volatility in precious metals coincides with significant moves in other markets. Turbulence helps drive Dollar Bloomberg reported the first weekly gain since early January as investors adjusted their positions amid changing risk appetite.

However, stocks have shown resilience. The Dow Jones Industrial Average crossed the 50,000-point mark for the first time, signaling optimism about the U.S. economy and corporate earnings despite commodity instability.

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Bessant did not outline immediate policy actions by U.S. officials. As investors continue to weigh geopolitical risks and monetary policy signals, markets are likely to remain sensitive to trading behavior and regulatory moves, Bloomberg reported.