LONDON / KARACHI — Precious metals staged a dramatic comeback on Wednesday, February 4, 2026, following one of the steepest two-day sell-offs in market history. Driven by a weakening US dollar and persistent geopolitical jitters, gold and silver have reclaimed significant ground, though they remain below the historic peaks reached last week.
Global Market: Buying the Dip
After tumbling from a record high of nearly $5,600 last week, gold surged more than 6% on Tuesday and Wednesday to settle around $5,070 per ounce.
- Silver’s Explosion: Silver outperformed gold, surging 15% in a single session to reach $87.40, recovering from a 27% “flash crash” on Friday.
- The “Trump Effect”: Analysts attribute the dollar’s slide to speculation that the US administration prefers a weaker currency to boost exports, despite the inflation risks.
Pakistan Bullion: Local Rates Bounce Back
Following the international trend, the local market in Pakistan witnessed a massive recovery today, reversing a three-day “plunge” that saw prices drop by over Rs. 61,000 in just 48 hours.
Current Rates (Estimated February 4, 2026): | Metal | Unit | Local Price (PKR) | Change | | :— | :— | :— | :— | | Gold (24K) | Per Tola | Rs. 514,362 | +Rs. 24,000 | | Gold (24K) | 10 Grams | Rs. 440,982 | +Rs. 20,576 | | Silver | Per Tola | Rs. 9,146 | +Rs. 741 |
Note: The market remains highly sensitive. Earlier this week, gold had briefly slid below the Rs. 500,000 mark for the first time in weeks, providing a brief window for buyers before this morning’s sharp rebound.
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PSX: Investor Confidence Soars
While gold bounced, the Pakistan Stock Exchange (PSX) also continued its record-breaking rally, buoyed by positive economic indicators and easing regional tensions.
- KSE-100 Index: The benchmark index gained over 1,300 points (0.70%) during early trade today, hovering around the 188,300 level.
- Economic Buffers: Investors reacted positively to news that inflation dropped to 5.8% in January, the lowest in years, increasing expectations for further interest rate cuts by the State Bank.
Historic Surge: Gold prices skyrocket in Pakistan and global markets!
24-carat gold per tola jumps Rs 24,000 in a day to reach Rs 514,360.#SamaaTV pic.twitter.com/ZKde7q1pIg
— SAMAA TV (@SAMAATV) February 3, 2026
“>http://<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>Historic Surge: Gold prices skyrocket in Pakistan and global markets! <br><br>24-carat gold per tola jumps Rs 24,000 in a day to reach Rs 514,360.<a href=”https://twitter.com/hashtag/SamaaTV?src=hash&ref_src=twsrc%5Etfw”>#SamaaTV</a> <a href=”https://t.co/ZKde7q1pIg”>pic.twitter.com/ZKde7q1pIg</a></p>— SAMAA TV (@SAMAATV) <a href=”https://twitter.com/SAMAATV/status/2018660577649029423?ref_src=twsrc%5Etfw”>February 3, 2026</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>
Summary of Industrial & Market Trends
- Safe Haven Demand: Geopolitical unrest continues to push investors toward gold as a hedge.
- Profit Taking: Last week’s crash was largely seen as “technical profit-taking” after gold touched overbought levels.
- Retail Impact: Wedding season demand in Pakistan remains strong, though the extreme volatility is making pricing difficult for local jewelers.
The State Bank of Pakistan is expected to review interest rates soon.
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