In recent months, global investors have seen a clear shift. Gold now takes the safe-haven role from U.S. Treasurys. This change ties to political risks and new trade ties. Former President Trump’s policies weigh on events.
Ned Davis Research shows that the gap between gold and U.S. Treasurys held by foreigners has shrunk. It went from about $1.23 trillion in mid-2025 to roughly $162 billion at the start of 2026. Global investors and governments move away from U.S. debt.
U.S. trade links remain unsettled. Trump’s trade steps and tariff hikes worry many trading partners. On January 20, 2026, markets dropped after Trump threatened tariffs on eight NATO nations. Stock futures fell, Treasury prices dropped (which sent yields up), and gold futures rose 3% to new highs above $4,700 per ounce. At the same time, the U.S. dollar lost nearly 1% against major currencies.
Billionaire Ray Dalio spoke at the World Economic Forum in Davos. He called the change a move from trade wars to “capital wars.” Many nations may now buy less U.S. debt and fewer U.S. assets. His view shows deep doubt over the world money order and the dollar as a reserve.
Some market watchers see the swings as a chance to buy. Jeff Kilburg of KKM Financial believes that recent price moves may give buyers a chance as corporate earnings come later in the quarter. Paul Christopher of Wells Fargo thinks that political news will not stop the market’s steady growth. Analysts expect the global economy to speed up in 2026. Joe Kalish from Ned Davis Research noted strong foreign moves into U.S. markets. Over the past year, foreigners bought a net of $1.6 trillion in stocks and bonds. In November, $220 billion came in as capital, with nearly half spent on stocks.
Global risks still matter. If trade and diplomatic strains grow, investors may buy even less U.S. stocks and bonds. This risk can lead to more capital leaving and to wider market swings.
Today, assets once thought safe now face new reviews. Gold rises as a steady asset when events shake confidence in U.S. Treasurys. These shifts raise questions about the future role of American debt in world finance and the effect of global events on capital flows.
—
📝 About This Article
This article was generated by Hivebox AI
—
⚠️ Disclaimer
This content is for informational purposes only and does not constitute financial or investment advice.
Please consult with a qualified financial advisor before making any decisions related to investments, markets, or assets.
—
Note on Accuracy & Liability
While we strive to provide accurate and up-to-date information, neither Hivebox AI nor AuCan Gold guarantees completeness, reliability, or suitability.
Use this content at your own risk. Neither party assumes liability for any losses you may incur.
—
Thank you for reading.
