Chinese middle-aged women and MZ investors snap up 432 tons of gold bars; U.S. Treasury warns trading is "out of control"

[Financial News] United States Secretary of the Treasury Scott Bessent has pointed to speculative funds from China as a key factor behind the recent unusual volatility in gold prices.
In an interview with Fox News on the 8th (local time), Bessent commented on the recent gold market, saying that "trading conditions in China have become unruly and out of control." He noted that speculative fever over gold in China is so intense that authorities have had to tighten margin requirements, adding that current gold prices appear to be in a classic "overshooting" phase.
Gold prices had repeatedly hit record highs amid overlapping geopolitical crises and concerns about the independence of the Federal Reserve System (the Fed). They then plunged sharply last week as a wave of profit-taking hit the market.
The Wall Street Journal (WSJ) has also cited aggressive buying by Chinese retail investors as a major driver behind the recent surge in prices of precious metals, including gold and silver.
According to data compiled from the World Gold Council and foreign media, Chinese investors purchased a total of 432 tons of gold bars and coins last year. That figure is up 28% from the previous year and is so large that it accounts for roughly one-third of global retail demand for gold.
Chinese preference for gold is not new, but the pace has recently accelerated. Rose Tian, a high school teacher in Beijing, said, "With my income falling and geopolitical tensions rising, gold is the only safe haven I can rely on to protect my assets." In the past, middle-aged women led the buying, but now even China's MZ generation is joining the hoarding trend, for example by collecting tiny 1-gram gold pellets in jars.
Shifts in the investment environment appear to be further fueling demand for gold. As China's property downturn deepens and volatility in its stock market increases, investors are accelerating their move into safe-haven assets such as gold, WSJ reported.


hsg@fnnews.com Han Seung-gon Reporter