China-Fueled Gold Rush Rally Hits a Wall as Supply Expansion Gains Momentum

Global gold prices have entered a sharp downturn, exposing cracks in the gold rush that China helped drive. Aggressive purchases by the Chinese government and large-scale hoarding by retail investors underpinned years of gains in bullion prices, but market sentiment has shifted dramatically in recent months. The reversal is widely attributed to expectations of rising supply as major gold mine developments accelerate across China and production growth gathers pace.