Gold prices extended their record run to breach the $4,800 per ounce level Wednesday on safe-haven flows driven by escalating friction between the United States and NATO over Greenland.

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Spot gold climbed ‍2.1% to $4,861.91 per ounce by 1152 GMT, after scaling a record $4,887.82 earlier ‍in the session. U.S. gold futures for February delivery climbed 2.1% to $4,864.80 per ounce.

Spot silver rose 0.2% to $94.71 an ounce, after hitting a record ⁠high of $95.87 on Tuesday, powered by a cocktail of factors including sustained physical tightness and safe-haven demand.

"There continues to be a myriad of factors boosting bullion, not least simply ​its safe haven quality. The Greenland crisis is front and center with President Trump expected to deliver his Davos speech later today," said Jamie Dutta, market analyst at Nemo.money.

Trump said on Tuesday that he remained firm ‍in his ambition to gain control of Greenland, refusing to rule out taking the Arctic island by ⁠force.

The U.S. president is likely to use the World Economic Forum in Davos to escalate his push for acquiring Greenland despite European protests.

Danish Prime Minister Mette Frederiksen said she would not yield to Trump's demands and abandon Greenland.

The dollar index hovered at a two-week low after White House ⁠threats over Greenland triggered a broad selloff ​in U.S. assets, from the ⁠currency to Wall Street stocks and Treasury bonds.

A weaker dollar makes greenback-priced metals cheaper for overseas buyers.

Meanwhile, investors are also looking ‍out for the Supreme Court's verdict on the legality of Trump's bid to remove Federal Reserve Governor Lisa Cook, adding ‌to concerns over Fed independence.

"We are looking for gold to punch through $5,000/oz as investors continue to seek inflation-proof, safe-haven assets," said SP Angel analyst John Meyer, adding that upward momentum could fade as ⁠ETF buying ​tails off.

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Amongst other precious metals, ‍spot platinum gained 0.1% to $2,464.79 per ounce after hitting a record $2,511.80 earlier in the day.

"Sustained uncertainty and the debasement trade are bidding up all precious metals including ‍silver," Dutta said, adding that speculative flows are driving up platinum prices.

Palladium fell 0.6% to $1,854.35, after touching a one-week high earlier.