Silver $100, Gold $5000 as Trump's 'Rupture' Turns on J.P.Morgan
The global financial markets witnessed a dramatic shift as silver prices soared above $100 per ounce and gold approached $5000 per ounce on Friday, marking the steepest weekly gains since the Covid pandemic. This surge came amidst a backdrop of political tension and legal action, with US President Trump suing J.P. Morgan, the nation's largest bank, for a staggering $5 billion.
While the S&P 500 index inched closer to its record high, J.P. Morgan Chase (NYSE: JPM) shares experienced an 8th decline in 12 sessions, shedding over 10% from their early January peak. This volatility reflects the complex interplay between geopolitical tensions and economic indicators.
Canada's Prime Minister Mark Carney, speaking at the World Economic Forum in Davos, Switzerland, emphasized the severity of the current situation, stating, 'We are in the midst of a rupture, not a transition.' He highlighted the growing use of economic tools as weapons, with great powers leveraging tariffs, financial infrastructure, and supply chains as strategic advantages.
Gold, a traditional safe-haven asset, reached a peak of $4987 per Troy ounce in London trading, up 7.1% from the previous week's close. This surge followed a sharp rise in March 2020, when the UK's lockdown coincided with a Dollar decline in the FX market. Silver, too, experienced a remarkable 9th consecutive weekly gain, rising by the most since August 2020, with a 13.7% increase from the previous week's auction.
The spot market for industrially-useful silver pushed London prices above $100 per Troy ounce, while New York silver broke the $100 mark on Comex future contracts for March to September settlements. Comex gold futures prices topped $5000 per ounce for April to August settlements.
Industry experts advise investors to embrace new record highs in gold, emphasizing the importance of going long. Despite negative data and news, gold prices continue to rise, prompting caution as historical experience suggests mean reversion after parabolic surges.
In China, the world's leading mining, importing, and consuming nation for gold, prices edged back to a small premium over London quotes of $0.70 per ounce. Shanghai recorded its 7th new all-time high in 10 sessions, with gold fixing at ¥1,110 per gram, a 14.1% increase in 2026. Silver in Shanghai also hit its 7th new all-time high in the past two weeks, rising 46.8% since New Year's Eve.
The strong demand for silver in China has contributed to record price premiums above global quotes. However, as prices surge, trading volumes in Shanghai silver futures contracts have plummeted to one-third of their level from two weeks ago, reaching the lowest since early September.
London silver has risen by 37.4% in 2026, surpassing the 33.4% surge in platinum prices. Palladium, another precious metal, has leaped by 26.5%, reaching its highest prices since late 2022. This surge is attributed to the metal's primary use in autocatalysts to reduce emissions from gasoline engine vehicles, which retreated from sudden highs above $3000 after Russia's invasion of Ukraine.
Trump's recent actions have further intensified the political climate. After backtracking on extra tariffs for the UK, Germany, and France, he announced his 'Board of Peace' with 35 member states, including Argentina, Israel, Turkey, Saudi Arabia, and the UAE, but excluding G7 partners. This board requires a $1 billion donation for permanent membership, with Trump stating, 'It can do pretty much whatever we want to do.'
Adding to the legal turmoil, Trump filed a lawsuit in Miami-Dade County, alleging that J.P. Morgan disrupted his personal business affairs by 'debanking' him in 2021, following the January 6th riot at the Capitol.
