KARACHI – In a significant turn for the bullion market, gold prices in Pakistan witnessed a massive decline on Monday, February 2, 2026. The price of 24-karat gold per tola dropped by Rs. 21,500, bringing the new rate down to Rs. 490,362.
This sharp correction follows a highly volatile period where gold prices had recently crossed the historic Rs. 500,000 mark. The latest data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) indicates a broader downward trend influenced by a major slump in the international market.
Key Price Updates
The following table summarizes the price changes recorded in the local market:
| Unit | New Price (PKR) | Decrease (PKR) |
| Gold per Tola (24K) | Rs. 490,362 | Rs. 21,500 |
| Gold 10 Grams (24K) | Rs. 420,406 | Rs. 18,433 |
| Gold 10 Grams (22K) | Rs. 385,386 | Rs. 16,897 |
| Silver per Tola | Rs. 8,405 | Rs. 601 |
Factors Driving the Crash
Financial analysts attribute this “brutal reset” to several global and domestic factors:
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International Market Slump: Global gold rates fell by approximately $215, reaching $4,676 per ounce. This came after the metal hit record highs near $5,600 just days prior.
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The “Warsh” Effect: The nomination of Kevin Warsh as the next U.S. Fed Chair by President Donald Trump has signaled a potential shift toward higher interest rates, strengthening the U.S. Dollar and making gold less attractive as a safe haven.
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Profit Booking: After reaching unprecedented peaks in January 2026, investors are aggressively selling off to lock in profits, leading to a cascading effect on prices.
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Margin Hikes: The CME Group’s decision to increase margin requirements for gold and silver futures has further pressured traders to unwind their positions.
Market Outlook
While the drop is substantial, experts warn that the market remains in a state of “extreme volatility.” Local jewelers note that despite the lower prices, genuine buyers remain cautious, waiting to see if the market stabilizes or continues its downward trajectory toward the Rs. 450,000 level.
Frequently Asked Questions
1. What is the latest gold price in Pakistan?
As of February 2, 2026, 24K gold per tola is Rs. 490,362, down Rs. 21,500 from previous rates.
2. How much did other gold units decrease?
10 grams of 24K gold dropped Rs. 18,433, 10 grams of 22K dropped Rs. 16,897, and silver per tola fell Rs. 601.
3. Why did gold prices fall so sharply?
The decline is due to a global market slump, profit booking, higher CME margin requirements, and potential US Fed interest rate hikes.
4. What is the “Warsh” effect mentioned?
Kevin Warsh’s nomination as U.S. Fed Chair signals higher interest rates, strengthening the USD and reducing gold’s appeal as a safe haven.
5. How has the international market affected local prices?
Global gold prices dropped by $215 to $4,676 per ounce, triggering a cascading effect in Pakistan’s local market.
6. Are investors still buying gold despite the crash?
Many genuine buyers remain cautious, waiting to see if prices stabilize or continue falling toward Rs. 450,000 per tola.
7. What is the market outlook for gold in Pakistan?
Experts warn that the market remains highly volatile, with prices likely to fluctuate further in the near term.
