Pakistan’s Foreign Reserves Rise to $21.49 Billion as Gold Prices Fall
Foreign reserves rise as Pakistan’s gold prices fall amid international market pressure.
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) rose 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 reached $26.83 billion during the period. Commercial banks held the remaining $5.34 billion.
Meanwhile, the Pakistani rupee strengthened slightly against the US dollar. It closed at Rs276.85 on Thursday, compared with Rs276.86 on Wednesday.
Gold Prices Drop in Pakistan
Gold prices fell sharply in the domestic market, following a decline in international trading. The drop came as rising oil prices intensified inflation concerns and strengthened expectations that interest rates could remain elevated for longer.
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According to the All-Pakistan Gems and Jewellers Sarafa Association, gold fell by Rs3,000 per tola to Rs431,536. The price of 10-gram gold also declined by Rs2,572 to Rs369,972. On Wednesday, the precious metal had already lost Rs900 per tola.
Silver prices also moved lower. The price of silver in Pakistan declined by Rs121 per tola to Rs6,086.
International Gold Market Faces Pressure
Internationally, spot gold fell 2.1% to $4,055.69 per ounce by 11:25 a.m. EDT (1525 GMT), after touching its lowest level since August 4 earlier in the session, Reuters reported.
US gold futures for December delivery dropped 1.9% to $4,071.40 per ounce.
Higher oil prices amid escalating Middle East tensions have raised concerns about persistent inflation. If energy costs remain elevated, central banks may have less room to cut interest rates, reducing the appeal of gold, which does not offer interest income.
Investors are also monitoring next week’s Federal Reserve policy meeting and the upcoming release of US personal consumption expenditures (PCE) data. Both could influence expectations for future interest-rate decisions.
Gold Outlook Hinges on the $4,000 Level
Adnan Agar, director at Interactive Commodities, said gold continued to face downward pressure in the international market. He placed the metal near $4,044 per ounce, with the session’s low at $4,034 and high at $4,140.
Agar identified $4,000 as a crucial technical level. He said a sustained break below the $4,000–$3,950 range could trigger further losses towards $3,800 and $3,700.
However, gold could recover towards $4,150–$4,180 if it holds above $4,000. Agar said the market’s next direction would depend on closing levels over the coming sessions.
Markets Await Economic and Policy Signals
Gold’s near-term outlook remains sensitive to oil prices, geopolitical developments and signals from the US Federal Reserve. These factors could influence inflation expectations, interest rates and investor demand for precious metals.
Pakistan’s latest reserve figures and slight rupee gain offer a separate snapshot of domestic financial conditions, while the sharp decline in gold highlights the impact of international market movements on local bullion prices.
