SBP reserves inch up to $16.4 billion

ISLAMABAD: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $19 million over the week to reach $16.4 billion, according to the latest figures issued by the central bank.

The SBP data showed the country’s total liquid foreign reserves at $21.89 billion. Of that amount, $16.4 billion was held by the central bank, while commercial banks held net reserves of $5.5 billion.

The latest reserve position points to a continued cushion against external payment pressures.

In the currency market, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market on Thursday. The local currency closed at 279.02 per dollar, up 0.01%, after improving by Rs0.03 from the previous day’s level of 279.05.

The move came as the dollar paused following recent losses in global markets.

Gold and silver retreat in local market

While the rupee edged higher and reserves rose slightly, gold prices in Pakistan recorded a sharp decline despite gains in international bullion markets.

According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola in the domestic market fell by Rs9,500 to Rs494,662. The rate for 10 grams of gold also dropped by Rs8,145 to Rs424,092.

The decline followed a strong rise a day earlier, when the per-tola price had climbed by Rs15,700 to Rs504,162 on Wednesday.

Silver prices also moved lower in the local market, with the per-tola rate decreasing by Rs300 to Rs7,884.

International bullion market shows volatility

In contrast to the domestic market, international gold prices moved upward earlier in the session, supported by a weaker US dollar and safe-haven demand linked to geopolitical tensions.

Spot gold rose about 1.7% to $4,796.50 per ounce after touching a near three-week high in the previous session. US gold futures were also up 1% at $4,823.

Later, however, international prices gave up some gains. Gold fell by $95 to $4,723 per ounce, including a $20 premium, reflecting intra-day volatility.

Investors remained cautious as they evaluated the durability of a fragile ceasefire between Washington and Tehran and awaited key US Consumer Price Index data due on Friday. The US PCE inflation data, which showed an increase in February, also added to uncertainty over the Federal Reserve’s policy direction.

Adnan Agar, Director at Interactive Commodities, said gold was trading within a set range and lacked strong immediate upward momentum unless important resistance levels were crossed. He said the market saw intra-day movement between $4,700 and $4,800, with prices hovering near $4,795.

Agar said developments in the Middle East, including reported Israeli strikes on Lebanon and emerging talks between the two sides, could affect wider regional stability and influence upcoming US-Iran discussions scheduled in Pakistan.