Big Decrease in Gold Prices Continues For The Third Consecutive Day
Gold prices in Pakistan have recorded a third consecutive day of steep decline, marking one of the sharpest short-term corrections in the country’s bullion market history. As of February 2, 2026, the long-discussed gold bubble appears to be deflating, just days after prices touched record highs.
The sell-off mirrors a major correction in the international market and has erased tens of thousands of rupees per tola in less than 72 hours.
Today’s Gold Rates in Pakistan (February 2, 2026)
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold prices plunged sharply again today.
| Gold Unit | Today’s Rate | Change |
|---|---|---|
| Per Tola (24K) | Rs. 490,362 | ▼ Rs. 21,500 |
| 10 Grams (24K) | Rs. 420,406 | ▼ Rs. 18,433 |
| 10 Grams (22K) | Rs. 385,386 | ▼ Rs. 16,897 |
This marks a decisive break from the aggressive upward momentum seen throughout January.
The 3-Day Gold Price Crash: What Just Happened?
Over the last three trading sessions, gold prices in Pakistan have suffered a historic collapse.
Breakdown of the Decline
- Day 1 (Friday): ▼ Over Rs. 35,500 per tola
- Day 2 (Saturday): ▼ Rs. 25,500 per tola
- Day 3 (Monday): ▼ Rs. 21,500 per tola
Total Damage
- Total 3-day loss: ~Rs. 82,500 per tola
- Peak price last week: Rs. 572,862 per tola
In percentage terms, this is one of the fastest corrections ever recorded in Pakistan’s gold market.
Why Are Gold Prices Crashing So Hard?
The current sell-off is not driven by a single event. It is the result of multiple global forces converging at once.
1. International Market Correction
The primary trigger is the collapse in the global spot price of gold.
- Peak: Nearly $5,600 per ounce
- Current level: Around $4,676 per ounce
After January’s explosive rally, global investors rushed to book profits, causing a rapid unwinding of speculative positions. Pakistan’s market, which closely tracks international prices, followed immediately.
2. The “Trump–Fed” Shock
Investor sentiment shifted sharply after US political and monetary signals.
- Donald Trump nominated Kevin Warsh as the next chair of the Federal Reserve
- Warsh is widely viewed as hawkish, favoring tighter monetary policy
This expectation of higher interest rates strengthened the US dollar. Historically, a stronger dollar puts heavy pressure on gold because:
- Gold becomes more expensive for non-US buyers
- Yield-bearing assets become more attractive than bullion
3. Easing Geopolitical Tensions
Another key factor is the cooling of geopolitical risk.
- Reports of easing tensions between the US and Iran reduced safe-haven demand
- Investors shifted funds from gold into equities and currencies
Gold thrives on fear and uncertainty. As those risks eased, demand weakened sharply.
4. Margin Hikes by Global Exchanges
Global commodity exchanges, including CME Group, increased margin requirements for gold trading.
This move:
- Forced leveraged traders to close positions
- Triggered panic selling
- Accelerated the downward spiral
Margin hikes often act as a catalyst for sharp corrections, and this case was no exception.
Silver Prices Also Take a Hit
The sell-off has not been limited to gold.
- Pakistan silver price: ▼ Rs. 601 per tola
- New rate: Rs. 8,405 per tola
- International market: Nearly 6% decline in a single day
Silver’s dual role as both a precious and industrial metal made it especially vulnerable during the correction.
PAVE.COM.PK Buying Advice: What Should Consumers Do?
For buyers planning weddings or long-term savings, the correction offers relief—but caution is essential.
Key Advice from Market Watchers
- The market is extremely volatile
- Prices may stabilize, but further corrective dips are possible
- Avoid panic buying or panic selling
- Consider phased purchases instead of lump-sum buying
Short-term traders remain at high risk until international markets find a stable floor.
Bottom Line
The third straight day of losses confirms that the gold rally of January 2026 has decisively reversed.
- Over Rs. 82,000 per tola wiped out in three days
- Global profit-taking, US monetary shifts, and easing geopolitical risks all converged
- Volatility is likely to remain elevated in the near term
