SBP reserves up $56m to $16.16b

Gold prices fall by Rs21,400/tola on global dip; rupee inches up

KARACHI:

The State Bank of Pakistan's (SBP) foreign exchange reserves increased by $56 million during the week ended January 30, reaching $16.16 billion, the SBP reported.

The country's total liquid foreign reserves stood at $21.34 billion, comprising $16.16 billion with the SBP and $5.18 billion held by commercial banks.

Furthermore, the Pakistani rupee edged slightly higher against the US dollar in the inter-bank market on Friday. It closed at 279.71, up Rs0.01 from the previous session's 279.72, the State Bank reported. The central bank was closed on Thursday for the Kashmir Solidarity Day.

Globally, the US dollar remained near a two-week high, on track for its strongest weekly gain since November, as stock markets fell amid concerns over AI-driven spending, while the yen strengthened ahead of Sunday's national election.

Meanwhile, gold prices witnessed a sharp decline in the local market as the price of 24-karat gold per tola decreased by Rs21,400 to settle at Rs507,762, according to the All Pakistan Sarafa Gems and Jewellers Association.

Likewise, the price of 10 grams of 24-karat gold fell by Rs18,347 to Rs435,324, while the price of 10 grams of 22-karat gold dropped by Rs16,819 to Rs399,061.

The price of silver also recorded a downward trend, with per-tola silver decreasing by Rs1,430 to Rs7,825, whereas the price of 10 grams of silver declined by Rs1,226 to Rs6,708.

In the international market, gold prices fell by $214 to $4,850 per ounce, while silver prices dropped by $14.30 to $73.50 per ounce.

Gold premiums in India more than halved from decadal highs this week as price volatility deterred buyers, while a pullback from record prices lifted demand in China ahead of the Lunar New Year, according to Reuters.

Bullion dealers this week charged a premium of up to $70 per ounce over official domestic gold prices, inclusive of 6% import and 3% sales levies, down from last week's $153 premium, the highest since December 2013.

"Buyers were confused by the price swings this week and had trouble figuring out the bigger price trend," a Mumbai-based jeweller said.

Expectations of an import duty hike in the budget lifted gold premiums last week, but they fell as demand slumped, said a Mumbai-based dealer with a bullion importing bank.

India's finance minister presented the 2026/27 Union Budget on February 1, leaving the duty structure unchanged. Gold prices were trading around 150,000 rupees per 10 grams on Friday, after hitting a record high of 180,779 rupees last week before sliding to as low as 133,687 rupees this week.