economy
February 13, 2026
How China's 'unruly' speculators might be fueling the frenzy in gold market
Gold has rarely been this volatile, and the bullion's sharp price swings are increasingly being linked to China's speculative traders, some analysts believe.
TL;DR
- Gold and silver prices increased as U.S. Treasury yields fell due to stalled retail sales growth.
- Speculative trading in China is increasingly being cited as a cause for gold's recent wild price swings and volatility.
- U.S. Treasury Secretary Scott Bessent described the gold market situation in China as "unruly" and a "speculative blowoff."
- Market watchers note surging activity in gold futures and ETFs, along with rising leverage, as factors behind gold's choppy trade.
- Chinese gold-backed ETF holdings have more than doubled since early 2025, and futures trading volume has significantly increased.
- Regulators in China have repeatedly raised margin requirements to curb volatility.
- Limited access to other financial markets in China makes gold an attractive alternative for investors, especially with falling property prices and low deposit rates.
- China's strategic motive includes de-dollarization efforts to protect against U.S. economic coercion.
- China's U.S. Treasury holdings have declined, while the People's Bank of China has expanded its gold reserves for 15 consecutive months.
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