Pakistan’s economic indicators showed a mixed picture this week as the State Bank of Pakistan (SBP) confirmed its reserves had dropped by $72 million, settling at $14.23 billion. The fall was linked to scheduled external debt repayments.
According to SBP data released Thursday, reserves held by commercial banks stood steady at $5.26 billion, pushing the country’s total foreign currency reserves to $19.50 billion.
Despite the decline in reserves, the Pakistani rupee gained marginally, strengthening by 0.04% to close at 282.56 in the interbank market, up from 282.67 a day earlier.
The currency movement came as the US dollar weakened globally on growing expectations of interest rate cuts by the Federal Reserve, further pressured by concerns over political influence in US institutions. The euro advanced ahead of upcoming peace talks on the Russia-Ukraine war.
Gold prices in Pakistan saw a steep climb, tracking a rally in the international market. The yellow metal’s global rise was driven by safe-haven demand after fresh US tariffs and disappointing labour market data reinforced the likelihood of rate cuts.
Domestically, gold surged by Rs2,900 per tola to Rs362,200, while 10-gram rates increased by Rs2,487 to Rs310,528, according to the All Pakistan Sarafa Gems and Jewellers Association. The rise followed Wednesday’s Rs1,300 jump.
Adnan Agar, Director at Interactive Commodities, said ongoing tariff tensions — involving the US, India, Russia, Europe, and Japan — are keeping prices volatile. He suggested that if international gold closes above $3,400, the next target could be $3,440–3,450.
As of Thursday afternoon, spot gold traded at $3,388.09 per ounce, up 0.6%, while US gold futures advanced nearly 0.7% to $3,455.60.
China’s central bank also added to bullish sentiment, announcing its ninth consecutive month of gold purchases in July, with reserves climbing to 73.96 million ounces, valued at nearly $244 billion.