Gold and platinum rose to fresh records — while silver was near an all-time peak — as the worsening crisis over Greenland and a meltdown in Japanese government debt supported haven demand.
President Donald Trump, who is in Switzerland for the World Economic Forum at Davos, showed no signs of backing down on his grab for the Arctic island. That prompted Greenland’s prime minister to warn the population of a possible military invasion, though he added it was an unlikely scenario.
Spot gold rallied to a record of $4 849.73 an ounce, while platinum surged to an all-time high of $2 511.10 an ounce before retreating. Silver was near $94.
The US threatened tariffs on eight European nations — including Germany, France and the UK — which opposed Trump’s plan to take over Greenland, raising the specter of a damaging trade war. French President Emmanuel Macron attacked Trump’s trade tactics, saying the continent needed more sovereignty to avoid “vassalization and blood politics,” while Canadian Prime Minister Mark Carney said the rules-based international order was effectively dead.
The war of words in Davos underscored how quickly the relationship between traditional US allies has deteriorated, rattling financial markets, pushing down the dollar and boosting demand for havens like precious metals.
Separately, a meltdown in Japanese sovereign debt highlighted worries about the fiscal situations of major economies, fueling the so-called debasement trade where investors avoid currencies and government bonds.
The situation in Japan is spurring “fear of market-led debasement in the rest of the world,” Daniel Ghali, a senior commodity strategist at TD Securities, wrote in a note. “Gold’s rally is about trust. For now, trust has bent, but hasn’t broken. If it breaks, momentum will persist for longer.”
Gold is poised for more support from world’s biggest reported buyer, the National Bank of Poland. The central bank approved plans to purchase another 150 tons, while Bolivia’s central bank has resumed purchases for its foreign reserves under new regulations enacted in December 2025.
“Gold remains our highest conviction,” Daan Struyven, co-head of commodities research at Goldman Sachs Group Inc., said at a media briefing on Wednesday, citing continued purchases by central banks. He reiterated Goldman’s base case scenario is for gold to climb to $4,900 an ounce, with risks to the upside, should private sector diversification broaden out.
Spot gold was 1.6% higher at $4 839.21 an ounce at 12:12 p.m. in Singapore, while platinum fell 1.3% to $2 443.31 after advancing as much as 1.5% earlier. The Bloomberg Dollar Spot Index was steady after falling 0.5% over the previous two sessions.
