Geopolitics: China May Be Active in US Gold

China has notably shifted away from reactive responses to Trump’s rhetoric yet is acting decisively in markets. Gold is part of this latest approach.

Recent trading patterns

• rising U.S. gold premiums,

• Volatility spiking

• unusual EFP activity,

• and evidence of sovereign wealth funds buying GLD and SLV

All suggest China is again accumulating gold and now exporting its pricing power directly. The behavior points to a deliberate effort to assert pricing power. Time will tell if this bears out.