FINANCE

China Gold Prices Tumble as Global Metals Rally Unwinds

Published: Feb. 2, 2026 4:02 p.m. GMT+8

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Gold prices in China fell more than 15% Monday, extending sharp losses from Friday and deepening the reversal of a rally as a global sell-off swept through precious metals markets.

The decline followed steep losses overseas, marking a rapid turnaround from a rally that had pushed prices up nearly 30% in January on heightened geopolitical risks and expectations of looser U.S. monetary policy.

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Gold prices in China dropped over 15% on Monday, deepening previous sharp losses and reversing a prior rally.
The decline followed global sell-offs, fading safe-haven demand, and stabilization after the Fed kept rates unchanged and Kevin Warsh was nominated as Fed chairman.
Analysts highlight market overheating, high volatility, and ongoing geopolitical de-escalation reducing demand for gold.

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Who’s Who

Caitong Securities Co. Ltd.: Caitong Securities Co. Ltd. observed that implied volatility for both gold and silver had reached historical highs. This left prices susceptible to a downturn once the upward momentum diminished, indicating concerns about the market's stability.

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What Happened When

January 2026：: Gold prices in China had surged nearly 30% over the month due to heightened geopolitical risks and expectations of looser U.S. monetary policy.

Thursday, January 29, 2026：: The Federal Reserve left interest rates unchanged.

Friday, January 30, 2026：: Gold prices in China suffered sharp losses, beginning a reversal from recent highs. U.S. President Donald Trump nominated Kevin Warsh as the next Fed chairman.

By Friday, January 30, 2026：: Iran’s foreign minister stated Tehran was ready to engage in talks to resolve tensions with the U.S.

Monday, February 2, 2026：: Gold prices in China fell more than 15%, extending the sharp losses from Friday and deepening the reversal of the rally.

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