SBP reserves rise $19m to $21.5b

Total stands at $26.8b; gold falls as global prices hit 2-month low

KARACHI:

The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $19 million to $21.49 billion during the week ended October 16, 2026, according to data released by the central bank on Thursday.

The country's total liquid foreign exchange reserves amounted to $26.83 billion during the week under review, including $5.34 billion held by commercial banks. Meanwhile, the Pakistani rupee gained Rs0.01 against the US dollar to close at 276.85, compared with Wednesday's close at 276.86.

Gold prices in the domestic market fell sharply, tracking a decline in the international market, where the precious metal dropped to its lowest level in more than two months as rising oil prices heightened inflation concerns and reinforced expectations of higher rates for longer.

In the local market, the price of gold declined by Rs3,000 per tola to Rs431,536, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold fell by Rs2,572 to Rs369,972. On Wednesday, gold had shed Rs900 per tola.

Internationally, spot gold dropped 2.1% to $4,055.69 per ounce by 11:25 am EDT (1525 GMT), after touching its lowest level since August 4 earlier in the session. US gold futures for December delivery declined 1.9% to $4,071.40 per ounce, as per Reuters.

Higher oil prices amid escalating Middle East tensions have fuelled concerns that rising energy costs could keep inflation elevated, potentially limiting the scope for interest-rate cuts. Investors are also looking ahead to next week's Federal Reserve policy meeting and the release of US personal consumption expenditures (PCE) data.

Meanwhile, silver prices in Pakistan declined by Rs121 per tola to Rs6,086. Commenting on the international market outlook, Adnan Agar, Director at Interactive Commodities, said gold was facing sustained downward pressure. He placed the metal at around $4,044 per ounce, with the day's low at $4,034 and high at $4,140.

Agar identified $4,000 as a crucial technical level. A sustained break below the $4,000-3,950 range could open the way for further decline towards $3,800 and $3,700, he said. However, if gold holds above $4,000, the market could recover towards $4,150-4,180. He said the direction of the next move would depend on where prices closed in the coming sessions.

The outlook remains sensitive to oil prices, geopolitical developments and signals from the US Federal Reserve, which could shape expectations for rates and the appeal for non-yielding assets such as gold.