Scott Bissent Accuses China of Speculation Behind Gold Fluctuations and Rising Global Prices
U.S. Treasury Secretary Scott Bissent accused China of being behind the sharp fluctuations seen in the gold market last week, describing Chinese speculation as "uncontrolled" and causing a sharp rise in the precious metal.
In an interview with Fox News, Bissent said:
"Gold prices have experienced some disturbances in China, where they had to tighten margin requirements. So, it seems to me that gold has seen a sharp rise due to speculation."
The minister's statements came in response to questions about the record rise in precious metal prices, which has been fueled by speculative buying, as well as geopolitical tensions and concerns about the independence of the Federal Reserve, which saw a surprising decline last week.
These disturbances also affected the currency market, with the dollar gaining for the first week since early January, while the Dow Jones Industrial Average surpassed the 50,000-point mark for the first time in its history, reflecting investor optimism about the U.S. economy and corporate profits.
As the midterm elections approach in November, Bissent considered the performance of the Dow as evidence that the U.S. economy is heading towards an upward cycle that will benefit citizens.
Regarding Federal Reserve policy, Bissent indicated that the central bank would act cautiously before any attempt to reduce its balance sheet, stating:
"I do not expect any quick action. They have moved to a plentiful system policy, which requires a larger balance sheet, so I think they will likely hesitate and take at least a year to make their decision."
Bissent also addressed the appointment of Kevin Warsh, President Trump's nominee for the Federal Reserve chair, praising his experience and qualifications:
"He will be very independent, but he will recognize that the Federal Reserve is accountable to the American people."
During a Senate hearing, Bissent commented on the possibility of suing Warsh if he does not lower interest rates as Trump prefers, emphasizing that the final decision rests with the president, and added that Trump’s remarks were a joke, highlighting the president's expectation that Warsh would align with his views on interest rates.
Gold and silver continue to capture the attention of investors globally, while markets closely monitor the movements of the U.S. Federal Reserve and their impact on the economy and financial markets.
