State Bank's reserves inch up by $34 million

Pakistan's foreign exchange reserves recorded a marginal rise during the week ended September 5, 2025, with the State Bank of Pakistan's (SBP) reserves increasing by $34 million to $14.3 billion.

According to data released by the central bank on Thursday, the country's total liquid foreign reserves stood at $19.7 billion. Of this, commercial banks held $5.3 billion.

Meanwhile, the Pakistani rupee extended its upward streak against the US dollar, inching up by 0.01% in the inter-bank market. The local currency closed at 281.56, registering an increase of four paisa from the previous day's close at 281.60. This also marked the rupee's 25th consecutive session of gains against the greenback.

Gold prices in Pakistan slipped, tracking movements in the international market, where the yellow metal held close to record highs as soft US jobs data fueled expectations of a Federal Reserve rate cut next week despite firmer inflation concerns.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola declined by Rs4,100 to settle at Rs384,000, while the 10-gram rate dropped by Rs3,515 to Rs329,218. A day earlier, gold had remained steady at Rs388,100 per tola, following an all-time high on Tuesday.

Internationally, spot gold consolidated near recent peaks as investors balanced the likelihood of monetary easing by the Fed against inflationary signals. Traders remain cautious ahead of the US Fed policy decision next week, which is expected to provide clearer direction for precious metals.

Spot gold was down 0.2% at $3,632.99 per ounce, as of 9:03 am EDT (1303 GMT). Bullion had hit a record high of $3,673.95 on Tuesday. US gold futures for December delivery fell by 0.3% to $3,671.50.

Interactive Commodities Director Adnan Agar said the market was witnessing a phase of consolidation after a sharp upward rally. Prices hit a high of $3,650 and a low of $3,612. Later, gold was standing at $3,632.

"The market has gone up very heavily and is technically overbought, so there are chances it may come down to between $3,550 and $3,580 before adjusting further," he explained.

Agar added that gold's next moves would depend on the Fed's upcoming policy decision. "Once the US monetary policy is announced on Wednesday, the market will reassess its direction based on the scale of interest rate cut and the Fed's forward guidance," he noted.

Analysts believe the local bullion market will continue to mirror global sentiment, while domestic price swings are also influenced by the rupee-dollar parity and import dynamics. For now, gold traders expect volatility to persist until the Fed meeting provides clarity.