KARACHI:
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) inched up by $14 million to reach $14.455 billion during the week ended October 17, 2025, according to data released by the central bank on Thursday.
The total liquid foreign reserves held by the country stood at $19.853 billion, of which commercial banks held net reserves of $5.398 billion.
Meanwhile, gold prices in Pakistan declined on Thursday, diverging from the international trend, where the precious metal rebounded sharply after two consecutive sessions of losses amid renewed geopolitical tensions and anticipation of key US inflation data due on Friday.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs3,500 per tola to settle at Rs433,862, while the rate for 10 grams dropped by Rs3,001 to Rs371,966.
On Wednesday, domestic gold prices had already recorded a sharp drop of Rs7,538 per tola, closing at Rs437,362.
In the international market, gold surged more than 1% during the day as investors sought safety amid renewed geopolitical risks. The global rally came as traders positioned themselves ahead of the release of US consumer price index (CPI) data, which could influence the Federal Reserve’s monetary policy direction.
Spot gold was up 1.4% at $4,149.39 per ounce as of 11:05 am ET (1505 GMT), after falling to a near two-week low in the previous session, according to Reuters. US gold futures for December delivery climbed 2.5% to $4,165.80 per ounce.
Prices hit a record high of $4,381.21 on Monday, but logged their steepest drop in five years in the following session.
Adnan Agar, Director at Interactive Commodities, said global gold prices were showing resilience despite recent volatility. “Gold was going up. It hit a high of $4,154 and was later around $4,144, with the day’s low at $4,065,” he noted. “The market has not broken below the $4,000 level, which shows the underlying strength. A strong resistance exists at $4,180, and if that level is crossed, prices could move towards $4,220.”
He added that the upcoming US CPI report and next week’s monetary policy decision would play a key role in determining short-term price direction, with potential for heightened volatility across global markets.
JP Morgan analysts on Thursday maintained a bullish outlook on gold, forecasting prices could reach an average of $5,055 per ounce by the fourth quarter of 2026. The forecast is based on “demand assumptions that see investor demand and central bank buying averaging around 566 tons a quarter in 2026,” the bank said in a note.
The Pakistani rupee recorded a slight appreciation against the US dollar, gaining 0.01% in the inter-bank market. According to the SBP, the local currency closed at 281.03 per dollar, up by Rs0.02 from Wednesday’s close at 281.05.
In the global market, the US dollar edged higher against major currencies as investors awaited the delayed release of US consumer inflation data on Friday and assessed escalating tariff tensions between Washington and Beijing.
