look news india
Washington/Business Desk. The unexpected fluctuations in gold prices last week have stunned investors around the world. The real reasons behind this golden ‘tsunami’ have now been revealed. US Treasury Secretary Scott Bessant, in a sensational revelation, has directly blamed China’s speculators for this instability.
According to Besant, the rise of gold prices to a record high and then a sudden fall was not a normal market phenomenon, but a ‘classic speculative blowoff’—a balloon inflated by speculation that was bound to burst.
Gold surges due to margin tightening in China
The Treasury Secretary said that gold trading in the Chinese markets had become so uncontrolled and based on speculation that the regulators there had to intervene.
Margin Requirements: As Chinese authorities tightened margin rules for trading, speculators faced a cash crunch.
Cutting Position: Due to shortage of cash, speculators started selling their positions in a hurry, due to which gold which was at record high suddenly fell down. Besant believes that gold’s recent strength was based on speculation rather than a solid foundation.
Dow Jones created history: crossed 50,000 for the first time
On one hand, gold is falling, on the other hand, the American stock market has written a new history. Dow Jones index for the first time 50,000 Has crossed the magical and historical figure of Rs.
Dollar strength: This is the first time since January that the dollar has registered a weekly gain.
Economic Confidence: Besant has described it as a symbol of the unwavering confidence of global investors towards the American economy. He indicated that this record is the beginning of a positive economic cycle ahead of the upcoming midterm elections.
That ‘joke’ of Federal Reserve and Trump
Discussing the central bank’s policies, Scott Besant made it clear that the Federal Reserve will be in no hurry to reduce its balance sheet.
Wait and Watch: The bank may remain in a waiting situation for the next one year regarding the cut in interest rates.
Trump’s statement: Besant defended President Trump’s statement during the Senate hearing in which he ‘jokingly’ talked about suing Kevin Varsh. However, he added that even though the head of the Fed may be independent, he should be accountable to the American public.
