Bold claim: 2026’s hottest momentum trades—gold, silver, and South Korea—are sinking as fears of a prolonged Iran conflict ripple through markets. But here’s where it gets controversial: the fate of these assets isn’t settled, and the narrative could shift again quickly.
Original content overview: In 2026, gold, silver, and South Korea were among the top momentum bets as investors sought alternatives to big-cap U.S. tech exposure amid a soaring S&P 500. The broad market had climbed about 64% over the prior three years but slipped about 1% this year, prompting a rotation into other assets. Yet recent developments—heightened fears of a drawn-out Iran war and rising oil prices—have driven a broad sell-off, including these previously strong trades.
Detailed moves you need to know:
- Gold: Spot gold fell just over 5% to around $5,041.81 per ounce, while gold futures dropped about 5% to $5,049. Despite the pullback, gold remains roughly 16% higher for the year.
- Silver: Silver futures slid more than 8% to about $81.23 per ounce, but silver stays roughly 15% higher year-to-date.
- South Korea: The iShares MSCI South Korea ETF (EWY) plunged about 14%, even though it’s still up nearly 30% for the year.
Why these assets mattered: Each offered a different kind of hedge or upside as market players looked for diversification beyond U.S. large-cap tech. The S&P 500’s strong run over the preceding years made some investors eager to take profits or rebalance into assets with different drivers.
What’s supporting each case (before the latest pullback):
- Gold: The bullion argument hinges on central banks diversifying away from the U.S. dollar and potential record-high levels—some forecasts even point toward the possibility of $6,000 an ounce—driven by inflation concerns and geopolitical risk hedges.
- Silver: Silver benefits from tight supply-demand dynamics and broad industrial use, including AI-related applications, giving it intrinsic demand beyond investment demand.
- South Korea: The country’s market strength has been led by memory-chip demand, with Samsung Electronics and SK Hynix delivering substantial year-to-date gains and contributing positively to the Kospi index.
Why the drop happened now: The selling surge coincided with renewed fears that the Iran conflict could intensify, stoking inflation worries as oil prices climbed. Brent crude surged past $84 per barrel, and WTI broke above $77, fueling risk-off sentiment that swept across risk assets, including the traditional havens and high-riding equities.
Important takeaway and perspective: Even though gold, silver, and EWY traded in tandem with broader risk-off moves, each asset still carries its own narrative and potential catalysts. If inflation concerns ease or if geopolitical tensions ease, these assets could stabilize or recover differently based on their unique demand drivers.
Controversial angle to consider: Some analysts argue that these assets were overextended due to fear-driven momentum rather than fundamental demand, suggesting the recent declines might simply be a reversion to more substantiated value levels. Others contend that central bank policy shifts or unexpected geopolitical developments could rekindle the upside for gold and silver, or sustain momentum in memory-related equities in Korea. What’s your view—have these assets corrected to fair value, or is this a mere pause before another leg higher? Share your take in the comments.
