SBP reserves rise by $21m to $14.44b

Gold rally continues, hits Rs442,800/tola on US-China tensions

KARACHI:

Pakistan's foreign exchange reserves recorded a marginal increase during the week ended October 10, 2025, according to data released by the State Bank of Pakistan (SBP).

The SBP's reserves rose by $21 million, reaching $14,440.8 million, up from $14,419.8 million a week earlier. Overall, the country's total liquid foreign reserves stood at $19,810.5 million as of October 10. Of the total, commercial banks held $5,369.7 million in net foreign reserves, while the SBP's share stood at $14,440.8 million.

Moreover, the Pakistani rupee recorded a slight appreciation against the US dollar in the inter-bank market on Thursday. By the end of the trading session, the local currency closed at 281.11 per dollar, gaining Rs0.01 from the previous day's rate. On Wednesday, the rupee had settled at 281.12, according to the SBP data.

Gold extended its record-breaking rally, hitting another all-time high in Pakistan, as global investors sought refuge in the precious metal amid rising US-China trade tensions and a prolonged US government shutdown.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold surged by Rs1,900 per tola, reaching Rs442,800, while the rate for 10 grams rose by Rs1,629 to Rs379,629.

Meanwhile, silver rates remained unchanged, with 24-karat silver holding steady at Rs5,337 per tola and Rs4,575 per 10 grams, while international silver was flat at $52.50 per ounce.

Analysts noted that the sustained rally reflects global economic uncertainty and investor anxiety, with gold continuing to act as a preferred safe-haven asset amid volatile geopolitical and financial conditions.

Spot gold was up 1.4% at $4,264.63 per ounce as of 11:06 am ET (1506 GMT) after touching a record high of $4,270.59 earlier, according to Reuters. US gold futures for December delivery were up 1.9% at $4,279.50.

The yellow metal has gained over 60% year-to-date, driven by geopolitical tensions, aggressive rate-cut bets, central bank buying, de-dollarisation and robust exchange-traded fund (ETF) inflows.

"Gold's trajectory will hinge on rate cut picture heading into 2026 as well as developments related to the US and China. If no deal is reached between the two countries and the relationship continues to deteriorate, that could be the spark gold needs to cross the $5,000/oz barrier," said Zain Vawda, analyst at MarketPulse by Oanda.