U.S. Treasury Secretary Scott Bessent has identified Asian traders as a contributing factor behind the recent sharp volatility in the gold market. Speaking on Fox News' "Sunday Morning Futures," Bessent described the gold market as having become somewhat disorderly, stating that, in his view, gold exhibited characteristics of a typical speculative sell-off.

Bessent made these remarks in response to a question about the precious metal's record-breaking rally, which had been fueled by speculative buying, geopolitical instability, and concerns over the Federal Reserve's independence, before abruptly reversing last week.

The market turbulence helped the U.S. dollar achieve its first weekly gain since early January. Meanwhile, the Dow Jones Industrial Average surpassed the 50,000-point milestone for the first time in history, reflecting investor optimism about the U.S. economy and corporate earnings.

With midterm elections approaching in November, Bessent cited the Dow's record as evidence that the U.S. economy is entering an upward cycle that will benefit ordinary Americans. He told Fox News, "We see new highs in the industrial sectors of the market. In my 35, 40 years on Wall Street, that tells me that Wall Street is signaling that Main Street is about to prosper. We are seeing a tremendous cyclical recovery."

Discussing the outlook for the year, Bessent said, "I believe we will achieve very strong economic growth, very strong job growth, and very strong real income growth."

Regarding Federal Reserve policy, Bessent indicated he expects the central bank to proceed cautiously with any actions to reduce the size of its balance sheet. He stated, "I do not expect them to move quickly on anything. They have shifted to an ample reserves regime policy, which does require a larger balance sheet, so I think they may stay put for a while, taking at least a year to decide what they want to do."

Bessent also commented on Kevin Warsh, President Trump's nominee for the next Fed Chair, describing him as "very independent, but also aware that the Fed is accountable to the American people." During a Senate hearing last Thursday, Bessent told lawmakers that whether Warsh would be sued if he failed to lower interest rates as Trump desired would be up to the president. When pressed by Senator Elizabeth Warren, Bessent clarified that his earlier statement stemmed from a joke made by Trump. He defended Warsh's qualifications and emphasized that Trump expects his Fed nominee to align with his views on interest rates.