The momentum trades of 2026 are breaking with gold, silver and South Korea down big
TOPSHOT – A saleswoman prepares gold jewelry for sale at a store in Lianyungang, east China’s Jiangsu province, on December 24, 2025. (Photo: AFP via Getty Images) / China OUT
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Gold, silver and South Korea, this year’s hottest exchanges, fell sharply on fears that the war in Iran could last longer than expected.
Here are the moves.
- Decrease in gold prices: spot gold It last fell more than 5 percent to $5,041.81 per ounce. gold futures It fell 5% to $5,049. They are still up more than 16% this year.
- Silver prices are falling: Commodity-linked futures It fell more than 8% to $81.23 per ounce. They remain 15% higher year-to-date.
- South Korea is in great decline: iShares MSCI South Korea ETF (EWY) It is down 14% but remains about 30% higher year to date.
Each of these trades were big momentum plays in 2026, capturing a bid as investors worried about their exposure to major U.S. tech and looked for asset classes that could outperform the market. After all, S&P 500 It has increased by 64% on a cumulative basis in the last three years; It fell 1% this year.
Gold, silver and South Korea each have their own appeal. Investors are optimistic that gold’s bullish trend will remain intact as central banks around the world move away from the US dollar; many are confident that bullion could soon rise above $6,000 per ounce. Silver is expected to benefit from tight supply-demand dynamics and there are major industrial use cases around AI.
EWY, 1 day
South Korea’s superior performance this year is largely related to worldwide demand for memory; This particularly boosted shares of Samsung Electronics and SK Hynix, which make up a large portion of the country’s Kospi index. The two memory powerhouses are up more than 50% and 44% respectively to date.
But all three trades soured along with the broader market on Tuesday as the prospect of a deepening conflict in Iran revived inflation fears as oil prices rose. Brent crude oilIt rose above $84 per barrel, which is the international benchmark. WTI crude oil It rose above $77.
Even gold got caught up in the selling frenzy; This was an odd situation for an asset often seen as a safe haven in times of crisis. But investors were indiscriminate in shedding assets they feared might have gone too far, too fast.
