Gold's Wild Ride: China's 'Unruly' Trading Under Fire After Record Surge & Plunge

• Gold surged to a record $5,594 per ounce, then plunged nearly 10% a day later, sparking scrutiny on China's role in extreme price swings.
• US Treasury Secretary Scott Bessent called recent gold market activity in China 'unruly,' citing tightening margin requirements and speculative blowoff.
• Analysts indicate China is the dominant force behind the gold surge, driven by speculative inflows from retail and institutional investors via ETFs, physical bars, and futures.
• Increased access to futures contracts and ETFs, along with rising leverage in China's gold market, is amplifying volatility and suggesting a speculative bubble.
• Chinese households are turning to gold due to limited alternative assets, weak property markets, and low deposit rates, while Beijing pursues de-dollarization.