Gold hit a record $2,485 per ounce as President Donald Trump's renewed tariff threats against Greenland triggered global risk aversion, sending Asia-Pacific equities lower and boosting safe-haven demand. The rally in XAU/USD coincided with declines in major U.S. indices and volatility in currency pairs.
- Gold reached a record $2,485 per ounce on January 21, 2026
- XAU/USD rose 3.1% in a single day, its largest gain since 2022
- Nikkei 225 fell 2.3%, CSI 300 declined 1.8% on Asia market reaction
- S&P 500 dropped 1.5%, Nasdaq Composite fell 1.9%, Dow Jones lost 1.6%
- USD/JPY fell 1.7% to 149.30 amid yen strength
- 10-year U.S. Treasury yield declined to 4.05%
Gold reached a new all-time high of $2,485 per ounce on January 21, 2026, driven by escalating geopolitical tensions following President Donald Trump’s announcement of potential tariffs on Greenlandic exports. The move prompted immediate market reactions across Asia, with Japan’s Nikkei 225 falling 2.3% and China’s CSI 300 shedding 1.8% as investors sought refuge in safe-haven assets. Global equities followed suit, with the S&P 500 dropping 1.5% and the Nasdaq Composite declining 1.9%, while the Dow Jones Industrial Average lost 1.6% in early U.S. trading. The spike in gold prices reflects a sharp increase in risk aversion, as Trump’s rhetoric over Greenland’s strategic mineral resources intensified fears of broader trade disruptions. The XAU/USD index surged 3.1% in one session, marking its strongest daily gain since 2022. Meanwhile, the USD/JPY pair dropped 1.7% to 149.30, underscoring the flight to safety in yen, while U.S. Treasury yields dipped, with the 10-year note falling to 4.05%. The turmoil extended beyond commodities and currencies. Energy stocks, particularly those tied to Arctic resource extraction, saw a 4.2% decline in the S&P Materials sector, while tech equities in the Nasdaq fell on expectations of delayed supply chains and increased input costs. Market participants now anticipate heightened volatility across asset classes, with traders pricing in a 68% probability of a U.S.-led trade escalation involving Nordic territories over the next 60 days.