【Tokyo, Japan】Gold Prices Plunge Sharply… Is the Upward Trend Over? Customers Rush to Jewelry Stores to Sell, Possibility of Rebound Remains

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Editor’s Note

Global gold and silver prices fell sharply over the weekend, prompting a wave of selling in markets like Tokyo and raising questions about whether the precious metals rally has peaked. This article examines the potential drivers behind the sudden drop.

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Sharp Decline Over the Weekend

Gold and silver prices plummeted sharply worldwide over the weekend. In Tokyo, there were people rushing to stores to sell their gold. Has the upward trend for gold come to an end?

The Trigger: The Next Fed Chair?

On Monday, February 2nd, the retail price of gold in Japan fell to 25,287 yen per gram, a sharp decline of over 14% compared to last weekend.

At a jewelry store in Tokyo’s Ginza district that buys precious metals, inquiries from customers who heard the news came in one after another.

“Our call center is also receiving a very high number of reservations and inquiries. There are many people who want to sell in a hurry before the price falls further.”

— Kenji Omine, Buying Advisor, Manekiya

There were also people who came to the store in a hurry to sell.

“Even if I wait a little longer, I don’t know (how the price will change). Well, I don’t want it to go lower than now.”

— Customer in his 60s selling a gold ring

A man in his 30s said he decided to sell after watching the price movement.

“A year ago, the price also rose to around 13,000 yen, and I thought I should sell immediately. Now that it’s around 30,000 yen, I thought it’s better to sell now.”

Gold prices, which had risen from the 24,000 yen range at the start of the year by over 5,000 yen in just one month and hit a record high last week, have now almost erased those gains over the weekend.

“The trigger was the prospect of a hawkish person who opposes interest rate cuts becoming the next Fed Chair. This caused the parties who had been buying heavily until now to start selling their holdings (gold) all at once. It was like a surface avalanche.”

— Koichiro Kamei, Financial & Precious Metals Analyst

Until now, due to geopolitical risks surrounding the Trump administration and uncertainty over future US monetary policy, confidence in the dollar wavered, and funds flowed into the gold market.

However, Kevin Warsh, who is seen as reluctant to cut interest rates, was selected as the next Fed Chair.

It is said that this personnel decision triggered a decline in the appeal of non-interest-bearing gold, starting a reverse rotation of funds flowing out of the gold market.

Possibility of Price Rebound Remains

The impact was not limited to gold; it also extended to silver prices. The decline rate compared to last weekend exceeded 34%, the largest on record.

So, has the trend of soaring precious metal prices ended?

“(Due to uncertainty in the international situation) central banks of emerging countries, for example, the central banks of China and India, hold it as foreign exchange reserves. The reasons for buying gold up to this point have actually not changed at all. It is possible that price increases will resume.”

— Koichiro Kamei

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⏰ Published on: February 03, 2026