THE GOLD BUBBLE BURST? 🌕📉 Bessent Blames China for "Speculative Blowoff"
Treasury Secretary Scott Bessent just dropped a bombshell on the commodities market, and he’s not holding back. $BERA
In a move that has sent ripples through global trading floors, Bessent officially labeled the recent record-breaking surge in gold prices a "classical speculative blowoff." Translation? He thinks the gold rally was a massive bubble driven more by hype than reality—and he’s pointing the finger directly at China. $KITE
The Breakdown: Why This Matters
The "China Driver": Bessent claims that aggressive speculation out of Chinese markets created an artificial "parabolic" move. He argues that these traders leveraged geopolitical tension to push gold toward the $5,600/oz mark, far beyond its actual value.
The Dollar Strikes Back: This commentary comes just as the Dow Jones hit its historic 50,000 milestone. Bessent is making it clear: the U.S. Treasury views the dollar and domestic equities—not gold—as the true engine of the 2026 economy.
A "Fake-Out" Rally: By calling it a "blowoff," Bessent is warning investors that the peak was a trap. He believes the sudden price reversal proves that the demand wasn't based on long-term stability, but on a "get rich quick" fever that has now broken. $ROSE
The Bigger Picture
This isn't just about gold; it’s about geopolitical chess. By framing the gold spike as a Chinese-driven speculative event, the U.S. is pushing back against the "de-dollarization" narrative that has dominated the headlines for months.
"The era of the alarmist hedge is over. We are seeing a return to fundamental growth." – A key sentiment echoed in Bessent's recent testimonies.
