SBP reserves rise $19m to $16.4b

Gold tumbles despite global gains; rupee edges higher

KARACHI:

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a modest increase of $19 million on a weekly basis to reach $16.4 billion, according to the latest data released by the SBP.

The country's total liquid foreign reserves stood at $21.89 billion, indicating a steady buffer against external payment pressure. Of this, $16.4 billion was held by the SBP, while net reserves with commercial banks amounted to $5.5 billion.

The Pakistani rupee edged up 0.01% to close at 279.02 against the US dollar in the inter-bank market on Thursday, gaining Rs0.03 from the parity of 279.05 a day earlier as the dollar paused after recent losses globally.

Meanwhile, gold prices in Pakistan declined sharply, even as international bullion markets posted gains of over 1% amid a weaker US dollar and heightened geopolitical uncertainty.

In the local market, the price of gold per tola fell by Rs9,500 to settle at Rs494,662. Similarly, the price of 10 grams of gold dropped by Rs8,145 to Rs424,092, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association.

The decline comes a day after gold surged significantly, with per-tola rate reaching Rs504,162 on Wednesday following a jump of Rs15,700. Meanwhile, silver prices also followed a downward trend in the domestic market, decreasing by Rs300 to Rs7,884 per tola.

In contrast to the local trend, international gold prices moved higher, supported by a softer US dollar and safe-haven demand driven by geopolitical tensions. Spot gold rose around 1.7% to $4,796.50 per ounce, after touching a near three-week high in the previous session, while US gold futures gained 1% to $4,823.

However, later in the session, international gold prices showed some correction, declining by $95 to $4,723 per ounce (including a $20 premium), reflecting intra-day volatility.

Investors remained cautious as they assessed the durability of a fragile ceasefire between Washington and Tehran, while also awaiting key US Consumer Price Index (CPI) data due on Friday. Additionally, the US PCE inflation data showing a pickup in February added to uncertainty around the Federal Reserve's policy outlook.

Adnan Agar, Director at Interactive Commodities, noted that gold is currently trading within a defined range, with limited immediate upside unless key resistance levels are breached. He said the market saw intra-day movement between $4,700 and $4,800, with prices hovering near $4,795, indicating a lack of strong directional momentum.

Agar highlighted that ongoing developments in the Middle East, including reported Israeli strikes on Lebanon and emerging talks between the two sides, could influence broader regional stability and impact upcoming US-Iran discussions scheduled in Pakistan.

"A ceasefire will help ease pressure on commodities like oil and gas, while failure in negotiations could weigh on gold prices," he said.