Pakistan’s Foreign Reserves Rise to $26.84bn as Gold Prices Extend Decline

Pakistan’s foreign exchange reserves increased during the week ended November 6, while gold prices continued to decline in the local market.

The State Bank of Pakistan (SBP) reported an $11 million increase in its foreign exchange reserves. The central bank’s holdings reached $21.57 billion, according to data released on Thursday.

However, the country’s total liquid foreign exchange reserves, including commercial banks’ holdings, declined slightly to $26.84 billion. They stood at $26.86 billion in the preceding week.

Commercial banks held net foreign exchange reserves of $5.27 billion during the latest reporting week.

According to Arif Habib Limited (AHL), the latest reserve position provides Pakistan with import cover of 3.03 months.

Rupee Records Marginal Gain Against Dollar

Meanwhile, the Pakistani rupee edged up by one paisa against the US dollar in the inter-bank market on Thursday.

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The currency closed at Rs276.61 per dollar, compared with Wednesday’s closing rate of Rs276.62.

Gold Loses Rs10,900 Per Tola

Gold prices in Pakistan extended their decline for a third consecutive session. The local price fell by Rs10,900 per tola as a sharp international sell-off weighed on bullion.

The All-Pakistan Gems and Jewellers Sarafa Association reported a new price of Rs416,536 per tola.

Similarly, the price of 10 grams of gold dropped by Rs9,345 to Rs357,112.

Gold had already recorded losses in the previous two sessions. On Wednesday, the price fell by Rs3,400 to Rs427,436 per tola. On Tuesday, it declined by Rs1,500 to Rs430,836.

Consequently, the cumulative loss over three sessions reached Rs15,800 per tola.

International Gold Prices Hit One-Year Low

International markets also recorded a sharp decline in bullion prices.

According to Reuters, spot gold fell 3% to $3,867.96 per ounce by 10:01am ET (1501 GMT). Earlier in the session, it touched its lowest level since October 2025.

Meanwhile, US gold futures for December delivery dropped 3.2% to $3,872 per ounce.

Rising oil prices have renewed concerns about inflation. As a result, investors see a greater possibility that interest rates could remain elevated for longer.

Higher interest rates generally put pressure on gold. Unlike interest-bearing assets, the precious metal offers no yield. Therefore, higher rates increase the opportunity cost of holding it.

Middle East Uncertainty and Strong Dollar Weigh on Bullion

Uncertainty over a diplomatic breakthrough in the Middle East also weakened market sentiment.

US President Donald Trump said Washington did not need a deal with Iran. His remarks added to uncertainty surrounding the region and its potential impact on energy markets.

Meanwhile, the US dollar remained near a 19-month high. A stronger dollar makes gold more expensive for buyers using other currencies, adding further pressure on prices.

Investors are now awaiting US Producer Price Index data due on Friday. The figures could provide fresh clues about inflation and the Federal Reserve’s monetary policy outlook.

Silver prices also declined in Pakistan. The domestic rate fell by Rs190 to Rs5,578 per tola.