SBP reserves edge up to $17.19 billion as gold rebounds in local market

ISLAMABAD: The State Bank of Pakistan's liquid foreign exchange reserves increased by $43 million on a weekly basis to $17.190 billion, the latest data released by the central bank for the week ending May 29, 2026, showed.

The figures showed the country's total foreign reserves at $22.636 billion. Of that amount, commercial banks were holding net foreign reserves of $5.446 billion, taking Pakistan's overall external liquidity position to $22.636 billion.

In the currency market, the Pakistani rupee posted a marginal gain against the US dollar in the interbank trade on Thursday. The local currency appreciated by 0.01% to close at 278.42, improving by Rs0.03 from the previous session's close of 278.45.

Globally, the dollar remained close to a two-month high. The euro was trading at $1.1604, while the British pound stood at $1.3424.

Gold prices recover after previous fall

Gold prices in Pakistan moved higher on Thursday in line with gains in the international bullion market. The increase came after the previous day's steep decline, as global sentiment shifted amid a softer dollar and easing tensions in the Middle East.

The price of gold per tola rose by Rs1,523 to Rs469,285. The rate for 10 grams also increased by Rs1,305 to Rs402,335.

On Wednesday, gold had fallen sharply by Rs8,600 per tola, underscoring continued volatility in international markets linked to changing geopolitical and macroeconomic expectations.

Spot gold was up about 1% at $4,476.85 per ounce at 1:41 pm EDT (1741 GMT), while US gold futures for August delivery settled 0.9% higher at $4,505 per ounce.

Market sentiment was affected by reports of a possible ceasefire arrangement involving Israel and Lebanon, which reduced near-term geopolitical risk premiums. That development pressured the US dollar and lowered bond yields, helping support demand for bullion.

Independent metals trader Tai Wong said gold had remained firm above its 200-day moving average despite intraday pressure, indicating continued underlying demand.

Silver, however, moved lower in the domestic market. Its price fell by Rs97 per tola to Rs7,797.

Adnan Agar, director at Interactive Commodities, said gold saw intraday volatility but continued to show a solid technical setup. He said the market had recently tested lows near $4,423 before recovering to $4,466, which, in his view, pointed to strong buying interest at lower levels. $4,400 remains an important support area, while a sustained move above $4,600 would be needed to confirm a stronger bullish breakout in the sessions ahead. He added that although short-term swings were likely, the medium-term outlook for gold remained positive.