TOP SHOT – A salesperson adjusts gold jewelry for sale at a store in Lianyungang city, eastern China’s Jiangsu province, December 24, 2025. (Photo courtesy of AFP, Getty Images) / China OUT
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The hottest trades of the year – gold, silver and South Korea – have fallen sharply on fears that the Iran war will last longer than expected.
The movements are as follows.
Gold Price Fall: Spot gold was last down more than 5% to $5,041.81 an ounce, and gold futures were also down 5% to $5,049. It’s still up more than 16% this year. Silver prices plummet: Futures prices related to silver commodities fell more than 8% to $81.23 per ounce. Year-to-date, it remains 15% higher. South Korea Drops: The iShares MSCI South Korea ETF (EWY) has plunged 14%, but is still nearly 30% higher year-to-date.
Each of these deals gained significant momentum in 2026 as investors wary of exposure to large-cap U.S. tech stocks looked for asset classes that could perform better in the market. After all, the S&P 500 has soared 64% over the past three years. It has fallen 1% this year.
Gold, silver, and Korea each have their own charms. Investors remain optimistic that gold’s upward trajectory remains intact as central banks around the world diversify away from the US dollar, believing many bullions could soon surpass $6,000 an ounce. Silver is expected to benefit from a tight supply and demand relationship, and has significant industrial applications centered around AI.
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EWY, 1 day
South Korea’s strong performance this year is mainly related to global memory demand, which has particularly boosted the stocks of Samsung Electronics and SK Hynix, which make up a large portion of South Korea’s Kospi index. The two memory giants are up more than 50% and 44%, respectively, year-to-date.
However, all three trades unraveled along the broader market on Tuesday as oil prices soared on the prospect of an escalation in the Iran conflict and reignited inflation concerns. Brent crude, the international benchmark, topped $84 per barrel, while WTI crude rose to over $77.
Even gold has been caught up in the frenzy, but it is unusual for it to be seen as a safe-haven asset during a crisis. But investors appear to be dumping assets indiscriminately, worried that they are going too far, too fast.
