🚀 Gold’s "Speculative Blowoff": Is the Party Over? 🇺🇲🇨🇳
U.S. Treasury Secretary Scott Bessent just put China in the crosshairs, labeling the recent gold surge a "classic speculative blowoff" fueled by "unruly" trading behavior.
After hitting a massive peak of $5,600/oz in late January, the gold market saw its worst weekly crash since 2013—plummeting 9% after Chinese regulators hiked margin requirements to stop the frenzy. 🛑
The Takeaway for Traders:
🔻Leverage Trap: Much of the rally was driven by high-leverage speculation in China, not just global macro fundamentals.
🔻The "Bessent Effect": The Treasury is watching "gold-backed digital asset" rumors closely but remains skeptical.
🔻Volatility is Back: Gold is currently fighting to hold the $5,000 psychological level.
Is this a "buy the dip" opportunity, or was the blowoff just the beginning of a deeper correction? 🧐
