Gold Approaches $5,000 Milestone; U.S. Stock Futures, Global Indexes Mixed

By Dow Jones Newswires Staff

Gold is approaching the $5,000-an-ounce milestone and yields on U.S. government bonds continued to fall following President Trump's about-turn on tariff threats on some countries over his plan to take control of Greenland. U.S. futures and Asian markets were higher, while most European indexes drifted lower after a brief rally following Trump's comments.

The benchmark 10-year Japanese government bond yield turned higher to reach 2.25% on speculation of additional rate hikes.

--U.S. futures for the Dow Jones Industrial Average were flat, while the S&P 500 and tech-heavy Nasdaq were both up 0.2%, continuing their rise over the past two sessions. Technology companies linked to artificial intelligence led the S&P 500 higher as Arista Networks gained 8.7% and Meta Platforms increased 5.7%. Over the year to date the DJIA is up 2.75%, while the S&P and Nasdaq are up 1% and 0.8%, respectively.

--In Asia, stocks mostly gained. Japan's Nikkei 225 closed 0.3% higher and the yen weakened after the country's central bank kept rates steady. In Hong Kong, the Hang Seng index gained 0.4%, while China's benchmark Shanghai Composite climbed 0.3%.

--European indexes were mostly down after rallying in the prior session following President Trump's reversal of planned Greenland-related tariffs. Italy's FTSE MIB index was the biggest faller, hurt by the mining sector. The MIB was down 0.5%, closely followed by Spain's IBEX 35 which was 0.3% lower, also dragged down by mining stocks. At the other end of the scale London's premier FTSE 100 index was up 0.2% with a boost from the healthcare and energy sectors. Germany's DAX was flat and France's CAC 40 index was down 0.1%. Ericsson was the biggest riser in the Stoxx 600 index--up 12%--after raising its dividend and announcing a $1.7 billion buyback plan.

--The dollar rose in the wake of President Trump backing off his threat for new tariffs against European nations opposed to his plan to acquire Greenland. The decision to back down on tariffs came as Trump announced a "framework for a future deal" on Greenland with NATO. "We do not think that the tariff threat has much remaining credibility," Standard Chartered's Steve Englander said in a note. It's still under debate whether the combination of higher tariffs and lower taxes has helped or hindered the U.S economy while growth outside the U.S. has been more resilient than expected, he says. The DXY dollar index rose 0.1% to 98.456.

--Yields on U.S. government bonds fell, continuing a trend since President Trump ruled out military action to acquire Greenland and backed off threats to impose tariffs on European countries over the issue. A sharp selloff in Japanese government bonds earlier in the week that impacted global bond markets has also calmed. SEB analysts expect that Treasury yields will now "retrace most of their recent rise." However, the risks of tensions between the U.S. and Europe re-emerging remain, alongside concerns over the independence of the Federal Reserve, they say. The 10-year Treasury yield fell 1.2 basis points to 4.239% as it drops back from a five-month high of 4.313% reached on Tuesday, Tradeweb data show.

--Bitcoin rose slightly but remains below $90,000 as it struggles for a more meaningful recovery amid uncertainty over key U.S. crypto legislation. Risk appetite improves after President Trump announced a framework for a future deal on Greenland with NATO and backed off tariff threats against several European nations. However, a report from Bloomberg that a U.S. crypto market bill could be delayed by several weeks limits gains in bitcoin and other cryptocurrencies. The delay comes as U.S. lawmakers shift their focus onto housing legislation to tackle costs for Americans ahead of this year's congressional elections. Bitcoin rose 0.3% to $89,447, LSEG data show.

--Oil prices rose in early trading as investors closely monitor developments in Iran, with Brent crude up 0.9% to $64.66 a barrel and WTI gaining 0.7% to $59.36 a barrel. President Trump said the U.S. is watching Tehran closely and has an "armada" heading toward the region, though he said he hopes it won't be needed. The gains come despite signs of progress in Ukraine peace talks and persistent concerns about excess supply in global markets. "Signs of ample supply remain evident, including a second straight weekly rise in U.S. crude inventories to the highest level since November, the return of flows in the Mediterranean and Black Sea, and Venezuelan barrels re-entering global markets following recent U.S. intervention," Soojin Kim from MUFG said.

--Gold prices surged to a fresh record, pushing closer to the $5,000-an-ounce milestone on heightened geopolitical risks, economic uncertainty and a weaker U.S. dollar. Futures in New York rose 0.5% to $4,939.20 a troy ounce after hitting $4,970 earlier in the session. Silver futures climbed 1.8% to $98.04 an ounce. "The rally is being fueled by FOMO [fear of missing out], alongside continued focus on broader hard-asset-supportive drivers following a slight easing in U.S.-EU tensions," Saxo Bank analysts said. "Central-bank demand remains firm, the dollar continues to weaken, and governments keep issuing debt with little clarity on long-term repayment." Meanwhile, PCE inflation data--the Fed's preferred inflation gauge--came in largely in line with forecasts in November, reinforcing expectations that the U.S. central bank will hold rates steady next week.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

January 23, 2026 04:34 ET (09:34 GMT)