Story perspectives

U.S. Treasury Blames China for Gold Volatility, Analysts Disagree

2/10/2026

Summary

Story summary

United States Treasury Secretary Scott Bessent attributed gold market volatility to Chinese traders, calling their activity 'unruly' as China tightens margin requirements to stabilize the market.
Chinese analysts refuted the claim, arguing volatility stems from United States policies—especially a weak dollar and expected Federal Reserve rate cuts—and from broader economic factors, not Chinese trading alone.
Markets reacted to news of a potentially hawkish Federal Reserve chair, further influencing gold prices.

History

Historical Context

The Gold Standard Act of 1900 established gold as the exclusive standard for U.S. currency, fixing the dollar's value at $20.67 per ounce. This shift marked a significant transition from bimetallism to a gold standard, influencing global trade dynamics. However, the gold standard faced challenges, leading to its suspension during the Great Depression and the eventual transition to fiat currency in 1971.

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Story summary

United States Treasury Secretary Scott Bessent attributed gold market volatility to Chinese traders, calling their activity 'unruly' as China tightens margin requirements to stabilize the market.
Chinese analysts refuted the claim, arguing volatility stems from United States policies—especially a weak dollar and expected Federal Reserve rate cuts—and from broader economic factors, not Chinese trading alone.
Markets reacted to news of a potentially hawkish Federal Reserve chair, further influencing gold prices.

1 / 2