Gold rates in Pakistan recorded a dramatic fall on Tuesday, February 3, 2026. Prices dropped sharply by more than Rs. 21,500 per tola in early trading. The sudden decline shocked investors, traders, and buyers across the country.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the steep correction followed a major downturn in global bullion markets. A slight strengthening of the Pakistani rupee in the interbank market also added pressure on local prices.
Market analysts described the move as a “brutal reset” after gold touched record highs in recent weeks. The correction has pushed prices back to levels last seen before the global rally.
Why Gold Prices Fell Sharply Today
The main reason behind the price drop is a global sell-off in gold. International investors booked profits after a long upward trend. As a result, bullion prices declined sharply in overseas markets.
Gold prices in Pakistan closely follow international rates. Any major movement in the global market quickly reflects in local pricing. On Tuesday morning, this linkage triggered a sharp downward adjustment.
Another key factor was the slight recovery of the rupee against the US dollar. Even a small improvement in the exchange rate can impact gold prices. Since gold is traded in dollars, a stronger rupee makes imports cheaper.
Traders said panic selling also played a role. Many investors rushed to offload holdings after seeing prices fall. This added to the downward momentum during early hours.
Despite the drop, jewellers noted that demand remained cautious. Buyers are waiting for price stability before making large purchases.
Silver Prices Follow Gold’s Downward Trend
Silver prices in Pakistan also declined on February 3, 2026. The white metal often mirrors gold’s movement. This time was no different.
According to APSGJA, silver prices dropped by around 6.6 percent compared to the previous day’s close. The fall was significant but less dramatic than gold.
The new silver rates are as follows:
24-karat silver per tola is now priced at Rs. 8,405. This reflects a drop of Rs. 601.
24-karat silver per 10 grams is trading at Rs. 7,205, down by Rs. 516.
Traders said weak industrial demand and global market pressure weighed on silver prices. However, some buyers see the drop as a short-term opportunity.
What This Means for Buyers and Investors
The Sarafa Association emphasized that local gold and silver rates remain tied to the interbank USD to PKR exchange rate. Any future movement in the currency will continue to affect precious metal prices.
Experts say volatility may persist in the coming days. Global economic signals, interest rate expectations, and currency trends will remain key drivers.
For jewelry buyers, the price drop may offer temporary relief. However, sellers advise caution, as prices could swing again quickly.
For investors, the correction highlights the risks of short-term speculation. Long-term trends still depend on inflation, global uncertainty, and central bank policies.
Market participants recommend closely monitoring international bullion markets before making major decisions.
