The gold market experienced significant volatility in early February 2026, with prices fluctuating dramatically due to geopolitical tensions and economic developments. According to Dawn, on February 5, 2026, gold prices fell sharply by 2.5% to $4,838.81 per ounce, influenced by a stronger dollar and easing US-China trade tensions. Tim Waterer from KCM noted that 'traders are more circumspect now on gold in light of recent extreme volatility.' Conversely, Business Recorder reported on the same day that gold prices rose over 1% to $5,016.89 per ounce due to ongoing geopolitical tensions, particularly between the US and Iran, which have historically driven investors towards safe-haven assets like gold.