SBP's forex reserves rise $16m to $21.47b

Total deposits stand at $26.9b; gold steady despite global rally

KARACHI:

The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $16 million to $21.47 billion during the week ended October 9, 2026, according to data released by the central bank on Thursday.

The SBP's foreign exchange reserves stood at $21.469 billion compared with the previous week's level of $21.454 billion, reflecting a modest increase in the central bank-held reserves. Pakistan's total liquid foreign currency reserves, including those held by commercial banks, reached $26.863 billion during the week under review.

The net reserves held by commercial banks stood at $5.394 billion as of October 9. Furthermore, the Pakistani rupee extended its marginal gains against the US dollar in the inter-bank market on Thursday, appreciating 0.01% to close at 276.92, up Rs0.03 from Wednesday's closing rate of 276.95 per dollar.

Meanwhile, gold prices in Pakistan remained unchanged at Rs437,836 per tola, even as international bullion prices rose more than 1% because of a weaker US dollar and declining Treasury yields.

According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10-gram gold also remained unchanged at Rs375,373. The local market held steady after gold prices had settled at Rs437,836 per tola on Wednesday, following an intra-day decline of Rs3,000.

In the international market, spot gold rose 1.1% to $4,149 per ounce by 12:36 am EDT (1636 GMT), recovering after falling to a one-week low in the previous session, as per Reuters. US gold futures for December delivery gained 1.5% to $4,170.10 per ounce, reflecting the recovery in bullion demand.

The US dollar index declined 0.4%, while the benchmark 10-year US Treasury yield fell to a three-week low. A weaker dollar makes gold, priced in dollars, less expensive for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion.

However, stronger-than-expected US Producer Price Index (PPI) data continued to complicate the outlook for monetary policy. Investors were also monitoring remarks by Federal Reserve Chair Kevin Warsh for signals about the central bank's future rate decisions. Despite the hotter inflation reading, expectations of a Federal Reserve rate hike this month remained subdued, providing some support to gold.

Adnan Agar, Director of Interactive Commodities, said international gold was trading in the $4,140-$4,150-per-ounce range, after reaching the intra-day high of $4,170 and low of around $4,110. He said the market had declined in the previous session but subsequently recovered, although uncertainty continued to cloud its direction.

Agar said market participants were discussing the possibility of gold falling towards $4,000 per ounce. A further decline below that level could potentially push prices towards $3,700. However, he noted that strong international demand could support a recovery, with prices potentially rebounding quickly after a decline. The outlook therefore remains sensitive to movements in the dollar, Treasury yields, inflation data and expectations about Federal Reserve's policy.

Meanwhile, domestic silver prices fell by Rs212 to Rs6,148 per tola, according to APGJSA. While international gold staged a recovery, the unchanged local gold rate and declining silver price highlighted differing movements in Pakistan's precious metals market.