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Macro EconomyMedium•3 March 2026•

1 min read

2026 Momentum Trades Break as Gold, Silver, and South Korean Equities Slump

An older Black man in a red cap and glasses stands between the Nigerian and UK flags, with gold bars, coins, and banknotes in the foreground. Cityscapes and financial charts with upward and downward a

Key Facts

1The momentum trades of 2026 are breaking, with significant declines in gold, silver, and South Korean assets.

Global financial markets are witnessing a significant shift as the momentum trades of 2026 begin to unravel, leading to sharp declines in gold and silver prices. South Korean equities have also been caught in the downward trend, signaling a broader reversal in international investor strategies. Previously, these assets served as popular hedges for institutional investors looking to diversify away from heavy exposure to U.S. large-cap tech stocks. The sudden shift in sentiment has triggered rapid liquidations of crowded positions, resulting in heightened market volatility across instruments like XAU/USD and XAG/USD. Analysts suggest that this breakdown marks the end of a period where precious metals and emerging markets acted as primary alternatives to the tech sector. This reversal is expected to prompt a comprehensive re-evaluation of portfolios that relied on these assets as alternative safe havens.