Gold rose to a new record high above $4,800 on Wednesday, supported by increased demand for safe-haven assets and a weaker dollar as geopolitical tensions escalated after the United States and its NATO allies exchanged threats of taking action over President Donald Trump’s attempt to seize Greenland.

Spot gold gained 1.2 percent to $4,818.03 per ounce by 01:25 GMT, after hitting a record high of $4,836.24 earlier in the session. U.S. gold futures for February delivery rose 1 percent to $4,813.50 per ounce.

Gold and Silver.

Trump said on Tuesday that he “will not back down” from his goal of taking control of Greenland and refused to rule out seizing the island by force.

He added: “I think we will work on something that will make NATO very happy and make us very happy, but we need it (Greenland) for security purposes,” noting that the alliance would not be very strong without the United States.

Meanwhile, French President Emmanuel Macron said Europe would not bow to bullies or submit to intimidation, in a sharp criticism of Trump’s threat to impose heavy tariffs if Europe does not allow him to take control of Greenland.

The U.S. dollar fell near its lowest levels in three weeks against the euro and the Swiss franc on Wednesday after White House threats regarding Greenland triggered a broad sell-off of U.S. assets.

The Federal Reserve (the U.S. central bank) is widely expected to keep interest rates unchanged at its meeting on January 27–28, despite Trump’s calls to lower them.

Gold, which does not yield interest, typically rises in a low interest-rate environment.

Silver rose 0.1 percent in spot trading to $94.68 per ounce after hitting a record high of $95.87 on Tuesday.

Platinum rose 0.9 percent in spot trading to $2,485.50 per ounce after hitting a record high of $2,511.80 earlier in the day, while palladium gained 0.4 percent to $1,873.18.