SBP reserves edge up to $16.1b

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $13 million during the week ended January 23, 2026, reaching $16.101 billion, according to official data released on Wednesday. The country's total liquid foreign reserves, including commercial banks' net reserves of $5.192 billion, stood at $21.293 billion.

Analysts noted that SBP reserves now provide around 2.5 months of import cover, offering some short-term support to the external sector.

Meanwhile, the Pakistani rupee gained Rs0.01 against the US dollar on Thursday, closing at 279.80 in the inter-bank market.

Gold prices in Pakistan surged to a fresh record high on Thursday, reflecting heightened volatility in global markets. In the local market, the price of gold per tola climbed to Rs572,862, up Rs21,200 during the day, while 10-gram gold was sold at Rs491,136, an increase of Rs18,175, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Wednesday, gold per tola had already risen to Rs551,662 after gaining Rs21,100. Silver also recorded gains, rising Rs264 to Rs12,175 per tola, extending a trend of strong demand for precious metals in the domestic market.

Internationally, gold markets experienced one of their most volatile periods in recent history. Spot gold touched $5,594 per ounce before falling more than 4% to $5,149.99 by mid-morning, as investors engaged in profit-taking after recent record highs. Spot silver, after hitting a record $121.64, dropped over 6%, while palladium also declined more than 6%, according to Reuters.

Adnan Agar, Director at Interactive Commodities, said the market fluctuated sharply throughout the day. "The market went up to $5,594, almost hit $5,600, before dropping to $5,150, and now it's at $5,360. This is very unusual. The volatility has increased sharply in recent weeks," he said.

He added that despite global economic concerns, the rapid rise in gold prices did not signal a total market collapse. "There are alarming issues like global debt, but the world isn't ending. If it were, purchasing power would fall sharply and gold should decline. Instead, it continues to rise, reflecting safe-haven demand," Agar explained. The expert warned that extreme swings, such as a $600 jump in gold prices over the past 28 days, were abnormal. "Normally, the market moves within a daily range of $50 to $80. Recently, the range has been nearly $700, which is unsustainable. Silver has also seen unprecedented moves, rising from $70 to $121. Such fluctuations are not typical and need to settle for normal trading to resume," he said. Spot gold is up approximately 19% so far in 2026, marking its strongest start to a year since the 1980s.

The surge in precious metals comes amid broader global concerns, including US-Iran nuclear negotiations and shifts in economic policy, which continue to shape investor behaviour worldwide.