Gold and platinum prices reached record highs, while silver prices approached their historical peak, driven by escalating safe-haven demand amid a worsening Greenland crisis and a collapse in Japanese government bonds.

US President Donald Trump has shown no intention of abandoning his plan to annex Greenland. The Prime Minister of Greenland has advised citizens to prepare for a potential military invasion, although he stated such a scenario is unlikely.

Spot gold surged to a historic high of $4,844.1 per ounce, while platinum hit a record $2,511.10 per ounce before paring early gains and trading largely flat. Silver prices fluctuated near $94 per ounce.

The US has threatened to impose tariffs on eight European nations, including Germany, France, and the UK, which oppose Trump's Greenland annexation plan, raising fears of a destructive trade war between Europe and America. French President Emmanuel Macron criticized Trump's trade tactics, stating Europe must strengthen its sovereignty to avoid "vassalization and blood-and-iron politics." Canadian Prime Minister Mark Carney declared the rules-based international order dead.

The war of words at the Davos forum highlights the rapid deterioration in relations between the traditional allies, the US and Europe, impacting financial markets, pressuring the US dollar, and boosting demand for safe-haven assets like precious metals.

Furthermore, the Japanese bond crash underscores investor concerns over the fiscal health of major economies. TD Securities Senior Commodity Strategist Daniel Ghali noted in a report that the situation in Japan has sparked fears of "market-driven currency devaluation elsewhere in the world, with gold's rise stemming from a lack of trust."

As of 10:10 Beijing time, spot gold was up 1.4% at $4,829.98 per ounce. Platinum fell 0.5% to $2,463.20 after earlier rising 1.5%. The Bloomberg Dollar Spot Index declined 0.1%.