SBP pumps Rs3.45tr into market

The State Bank of Pakistan (SBP) injected a cumulative liquidity of around Rs3.45 trillion into the banking system through its conventional and Shariah-compliant Open Market Operations (OMOs) to ensure adequate liquidity ahead of the weekend.

According to the Domestic Markets and Monetary Management Department, the SBP accepted Rs3.26 trillion under the conventional reverse repo OMO at a rate of return of 11.01% per annum. The operation included Rs297 billion for seven days and Rs2.96 trillion for 14 days.

Separately, under the Shariah-compliant Mudarabah-based OMO, the central bank accepted Rs193 billion for a seven-day tenor at a return rate of 11.11%,

with no bids received for the 14-day tenor.

Moreover, the Pakistani rupee gained slightly against the US dollar in the interbank market on Friday, appreciating by 0.01%.

By the end of the trading session, the local currency closed at Rs281.17 per dollar, up Re0.03 from Thursday's closing rate of Rs281.20.

Meanwhile, Gold prices in Pakistan fell on Friday, while silver reached an all-time high, reflecting contrasting trends in the bullion market amid global uncertainty.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs4,578 per tola to Rs420,600. Similarly, the rate of 10-gram gold fell by Rs3,924 to Rs360,597. On Thursday, gold had closed steady at Rs425,178 per tola.

In contrast, silver continued its upward rally, rising by Rs34 per tola to hit a record Rs5,100, its highest-ever level in the local market.

Adnan Agar, Director at Interactive Commodities, told reporters that while gold remained slightly lower compared to Thursday, it still faced downward pressure in technical terms. "Gold is still overbought and the market is asking for a further correction," he said. "If gold falls between $3,850 and $3,700, it could clear old positions before forming a new leg upward."

He added that the ongoing US government shutdown was a key factor influencing global bullion prices. "The day the US shutdown ends, gold could see a correction of $100-200," Agar predicted.

Commenting on silver's surge, Agar explained that global supply tightness was driving up spot prices. "There's a shortage of physical delivery on international exchanges, especially the London Metal Exchange. That's why spot silver is trading higher even though futures are down," he noted.

Analysts expect short-term volatility to persist in both gold and silver, with the next few trading sessions, particularly Monday and Tuesday, likely to determine the market's near-term direction.