NEW YORK — Global markets from Tokyo to Europe and the U.S. jolted Wednesday as the gold price surged to fresh records and investors trimmed exposure to U.S. stocks, bonds and the dollar in a new bout of “Sell America” anxiety. The rush into havens was fueled by renewed U.S. tariff threats tied to Greenland and by whiplash in Japan’s long-term bond market, Jan. 21, 2026.
Why the gold price is leading the safety trade
The surge built quickly. After clearing a new milestone Tuesday, Reuters’ daily metals report showed spot gold near $4,757 an ounce after touching an intraday record around $4,766, with traders citing safe-haven demand, a softer dollar and rising expectations for lower U.S. interest rates. “Gold has surged deeper into uncharted territory as investors hedge against rising political risk,” market analyst Fawad Razaqzada said.
By Wednesday, the move had broadened into a cross-asset safety stampede: a Reuters global markets wrap put spot bullion near $4,865 an ounce as volatility spread across equities and currencies. Reuters also noted the gold price rose about 64% in 2025 and has added roughly 10% since the start of 2026 — a reminder that the rally is no longer a short-term panic bid, but a sustained repricing of risk.
‘Sell America’ jitters return
Investors leaned into a playbook that’s become familiar: reduce U.S. exposure first, then ask questions later. In the Reuters wrap, Westpac senior economist Mantas Vanagas said, “The ‘sell America’ trade was the driving force behind major market moves overnight,” as investors looked to cut exposure to the U.S. ahead of President Donald Trump’s scheduled appearance at the World Economic Forum in Davos.
Rates markets reinforced the message. Reuters reported Tuesday that Japan’s jump in borrowing costs rippled through global debt markets as investors weighed fiscal strain and renewed tariff threats, nudging long-dated U.S. yields higher before conditions steadied. The effect was a classic squeeze: higher bond yields pressure stocks, while a weaker dollar can add fuel to the gold price.
Japan bonds bounce after a brutal selloff
Japan’s super-long government bonds were at the epicenter of Tuesday’s turmoil, then snapped back. The Associated Press reported the yield on Japan’s 40-year government bond was trading near 4.06% early Wednesday, down from a recent record around 4.22%.
Even with the bounce, the politics are keeping traders jumpy. Reuters reported Wednesday that Prime Minister Sanae Takaichi’s campaign pledge to suspend the 8% consumption tax on food for two years has unsettled investors ahead of a Feb. 8 election, in a country where public debt exceeds 230% of GDP. As Japan’s yields jumped and then eased, the gold price benefited from the market’s instinctive “policy risk” hedge.
Older shocks show how fast the gold price can reset
The scale is new, but the impulse isn’t. During the euro zone debt crisis, Reuters tracked gold rising above $1,900 as recession fears and political disunity rattled Europe. In 2020, Reuters reported gold vaulting above $2,000 for the first time as ultra-low rates and U.S. stimulus bets dominated the outlook. More recently, Reuters documented the April 2025 tariff shock that hammered risk assets and helped cement the modern “Sell America” narrative.
For now, traders are watching whether Japan’s bond bounce holds, whether tariff rhetoric cools and whether central banks can lower inflation without rekindling deficit fears. If those questions stay unresolved, the gold price may keep acting as the market’s pressure gauge.
