Core Viewpoint - The article discusses the increasing tension in US-European relations due to the Greenland situation, leading European investors to seek to withdraw from dollar assets, with gold emerging as a preferred safe-haven alternative [1]. Group 1: Market Reactions - The US dollar experienced its worst week since June, dropping nearly 2%, while gold saw an impressive rise of 8.4%, marking its best week in nearly six years. Silver also surged by 14.4% [1]. - The dollar index has not shown signs of recovery after a significant decline of 9.5% in 2025, which was the largest annual drop since 2017 [1]. Group 2: European Investor Sentiment - The Greenland crisis has heightened political risk concerns regarding US assets among European markets, prompting calls for the repatriation of gold reserves held in the US. A German lawmaker has suggested that Germany's 37% gold reserves stored in New York are no longer justifiable [1]. - Germany has over 1,200 tons of gold reserves stored in the US, valued at over 100 billion euros at current prices, with about half of its gold held in Frankfurt and 13% in London [1]. Group 3: Historical Context - Historical parallels are drawn to 1967 when France converted its pound and dollar reserves into gold, leading to a dollar crisis. The end of the Bretton Woods system was marked by the US's suspension of dollar-gold convertibility in 1971, resulting in gold prices skyrocketing from $35.08 to $192.25 per ounce between 1970 and 1974 [2]. - Current geopolitical tensions and uncertainties surrounding US fiscal policies have led Nordic institutional investors to express unprecedented concerns about holding US assets, with over $12 trillion in European capital seeking to "de-risk" from the US [2]. Group 4: Institutional Outlook on Gold - Institutions remain optimistic about gold's future performance, with Goldman Sachs raising its year-end gold price forecast from $4,900 to $5,400 per ounce due to increasing demand from private investors and central banks [3]. - In 2025, global gold ETF inflows reached a record high of $89 billion, with total holdings increasing to 4,025 tons, and China's gold ETF market saw a net inflow of approximately 118 billion yuan (about 19 tons) [3]. Group 5: Gold as a Safe-Haven Asset - The significant drop in the dollar and the rise in precious metals reflect profound changes in the global monetary system. A Bank of America report indicates that geopolitical concerns are leading to a growing belief that gold is a critical hedge during financial turmoil [5]. - Ray Dalio, founder of Bridgewater Associates, suggests that increasing trade tensions and fiscal deficits may undermine confidence in US debt, prompting a shift towards hard assets like gold [5]. - By the end of 2025, the US debt is projected to reach $38 trillion, with approximately $10 trillion in refinancing pressure in 2026, as major rating agencies have downgraded US sovereign credit ratings [5].