""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."
""I wouldn't expect them to do anything quickly," he said. "They've moved to the ample-regime policy, and that does require a larger balance sheet, so I would think that they'll probably sit back, take at least a year to decide what they want to do." President Donald Trump's nominee to become the next Federal Reserve chair, Kevin Warsh, "is going to be very independent, but mindful that the Fed is accountable to the American people," Bessent said."
Chinese traders tightened margin requirements after speculative buying produced unruly swings that drove a record-breaking rally in gold and other precious metals and then abruptly reversed. The rally was fueled by speculative buying, geopolitical turmoil and concern about Federal Reserve independence. The turmoil accompanied a weekly dollar gain and the Dow Jones Industrial Average topping 50,000 for the first time, signaling investor optimism about the U.S. economy and corporate earnings. Federal Reserve balance-sheet reductions are expected to proceed cautiously, likely taking at least a year to decide. Kevin Warsh is characterized as independent yet mindful of Fed accountability, with comments about pressure to lower rates framed as a joke and an expectation of alignment with presidential views.
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