FX reserves edge up to $22.5b

Pakistan's total liquid foreign exchange reserves increased by $23.7 million during the week ended August 7, 2026, reaching $22,498.3 million, according to data released by the State Bank of Pakistan.

Foreign reserves held by the central bank rose by $14 million to $17,057 million. Net foreign reserves held by commercial banks increased by $9.7 million to $5,441.3 million, according to Arif Habib Limited (AHL). Import cover remained unchanged at 2.51 months, based on average imports for the last three months, AHL noted. On a fiscal year-to-date basis, the total liquid reserves were down $735 million. In the calendar year to date, the reserves soared $1.756 billion, it said.

Furthermore, the Pakistani rupee extended its marginal gains against the US dollar on Thursday, closing at 277.65, up Rs0.01 from Wednesday's settlement at 277.66. The dollar's advance stalled after a benign US inflation reading overnight, leading traders to pare back bets on a near-term Federal Reserve rate hike.

Meanwhile, gold prices in Pakistan declined in line with losses in the international market, where the metal pared earlier declines after the US producer price data came in largely as expected. According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola closed at Rs460,436, down Rs3,500. Ten-gram gold was quoted at Rs394,749 after a drop of Rs3,001. On Wednesday, gold had risen by Rs4,200 per tola.

In the global market, spot gold fell 0.5% to $4,386.69 per ounce by 09:26 am EDT after touching a session low of $4,363.44, as per Reuters. US gold futures also dipped 0.5% to $4,444. The metal had fallen nearly 1% earlier in the session before recovering some ground. Profit-taking kept prices below the $4,500 level. The US producer price index data largely matched market expectations, reducing bets for a Fed rate hike in September to 32%, according to the CME FedWatch Tool. However, Federal Reserve official Hammack reiterated the need to raise rates.

Interactive Commodities Director Adnan Agar said gold prices came down a bit. "Later, the market stood around $4,372, and the day's high was almost $4,450. The market hit a low of $4,350," he noted. "A big resistance point for gold is $4,500. We touched it twice and gold tumbled from that point, with traders being jittery close to the $4,500 level at the moment," said Bob Haberkorn, senior market strategist at StoneX.

Meanwhile, the price of silver decreased by Rs175 to Rs6,936 per tola in the local market.