The strong upward momentum in gold prices has slowed, with a significant correction recorded in both international and Pakistani markets. Analysts say the decline is largely driven by profit-taking by investors, following a prolonged surge in prices.
Sharp Price Swings in Pakistan
Gold prices in Pakistan have seen major fluctuations over the past few days:
-
Jan 29, 2026: Gold stood at approximately Rs 572,000 per tola
-
Jan 30: Price dropped by Rs 35,500
-
Jan 31: A further decline of Rs 10,000
-
Feb 2: Gold fell to around Rs 490,000 per tola
-
Feb 3: A rebound of Rs 13,700, pushing rates to Rs 504,000
Latest market update shows:
-
24K gold per tola down another Rs 21,400, now at Rs 507,762
-
10 grams gold fell Rs 18,347, priced at Rs 435,324
-
International gold price dropped $214 to around $4,850 per ounce
-
Silver (per tola) fell Rs 1,430 to Rs 7,825
Why Did Gold Prices Fall?
Economic expert Raja Kamran says global demand for gold remains fundamentally strong, as major central banks are gradually reducing reliance on the U.S. dollar and increasing gold reserves, particularly China and India.
However, he notes:
-
Temporary demand slowdown due to holidays in China and Europe
-
Early-year portfolio rebalancing by financial institutions
-
Short-term market correction after sustained price increases
Despite the drop, geopolitical tensions in the Middle East, Europe–U.S. disagreements, and regional instability continue to support gold as a safe-haven asset.
Local Market Perspective
Karachi bullion market member Abdullah Chand said prices had risen continuously from December to January, creating the need for a “healthy correction.”
He believes the recent fall was part of this short-term adjustment and does not signal a long-term bearish trend. According to him, if global conditions remain tense, gold could potentially rise toward $6,000 per ounce in the future.
Silver Also Sees Heavy Losses
Silver markets also faced sharp volatility. After touching nearly $90 per ounce, silver prices plunged to around $65.67 per ounce, marking a drop of over 10% in a short span.
Experts attribute the fall to:
-
A stronger U.S. dollar
-
Reduced global demand
-
Investor profit-booking
Local buyers have turned cautious, with many delaying fresh investments.
