economy
March 3, 2026
The Momentum Trades of 2026 Are Breaking With Gold, Silver and South Korea Down Big
Each of these assets caught a bid this year as investors nervous about their exposure to U.S. large cap tech sought out different asset classes.
TL;DR
- Gold prices dropped more than 5% to $5,041.81 per ounce, though remain up over 16% for the year.
- Silver futures fell more than 8% to $81.23 per ounce, still up 15% year to date.
- The iShares MSCI South Korea ETF plunged 14%, but is up nearly 30% year to date.
- These assets were popular as investors moved away from U.S. large-cap tech.
- The S&P 500 is down 1% this year after a 64% cumulative rise over the prior three years.
- Gold's appeal was linked to central banks diversifying from the U.S. dollar.
- Silver's expected benefit comes from tight supply-demand and industrial use in AI.
- South Korea's performance was driven by global demand for memory chips, boosting Samsung Electronics and SK Hynix.
- A potential deepening conflict in Iran revived inflation fears and caused oil prices to spike.
- Even gold, typically a safe haven, was caught in the selling frenzy as investors dumped assets perceived to have risen too quickly.
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