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SBP reserves rise $19m; gold jumps Rs11,200

Our Correspondent September 04, 2026 1 min read

State Bank of Pakistan. Photo: File

KARACHI:

The foreign exchange reserves held by the State Bank of Pakistan (SBP) rose $19 million to $17.12 billion in the week ended August 28, 2026, according to data released by the central bank on Thursday.

The net foreign reserves with commercial banks dropped $78.8 million to $5.41 billion over the same period. As a result, the country's total liquid foreign reserves fell $59.5 million to $22.53 billion.

The SBP's holdings remained close to $17.1 billion through August after falling from $18.38 billion at the end of June, mainly due to external debt payments. Furthermore, the Pakistani rupee closed at 277.42 against the US dollar on Thursday, gaining Rs0.03. On Wednesday, it had settled at 277.45.

Gold prices in Pakistan rose sharply, tracking a more than 2% gain in the international market. The yellow metal climbed after traders scaled back expectations of a September US rate hike. Fed Governor Christopher Waller indicated that recent progress on inflation could support keeping rates unchanged.

In the local market, the 24-karat gold reached Rs465,236 per tola after rising Rs11,200 during the day, according to the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold was sold at Rs398,864, up Rs9,602. Globally, spot gold rose 2.4% to $4,491.55 per ounce by 1618 GMT, after touching its highest level since August 28. US gold futures for December delivery surged 2.8% to $4,539.20.

Interactive Commodities Director Adnan Agar said the market recovered after hitting an early low of around $4,426. The day's high was near $4,510, with bullion trading around $4,490 after a nearly $100 rise. "Positive comments regarding US monetary policy triggered this rise," Agar said. "However, crucial data on Friday will help make the key decision. Next week's US inflation data will be the final deciding factor."

He added "if inflation rises, the chances of a US rate hike will increase, which could pull gold prices lower". Silver also advanced in the local market, rising Rs185 to Rs7,044 per tola.