KARACHI:

The State Bank of Pakistan’s (SBP) liquid foreign exchange reserves rose by $43 million to $17.190 billion compared to the previous week. Overall, the country’s total foreign reserves stood at $22.636 billion as of May 29, 2026, as per the latest data issued by the central bank.

Breakdown shows that the net foreign reserves held by commercial banks amounted to $5.446 billion, bringing the combined external liquidity position to $22.636 billion. The Pakistani rupee appreciated 0.01% against the US dollar in the interbank market on Thursday, closing at 278.42, a gain of Rs0.03 from the previous day’s 278.45. Meanwhile, the dollar held near a two-month high globally, with the euro at $1.1604 and the British pound at $1.3424.

Gold prices in Pakistan rose on Thursday, tracking gains in the international bullion market, where prices advanced more than 1% amid weakening dollar sentiment and easing geopolitical tensions in the Middle East. According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola increased by Rs1,523 to settle at Rs469,285. Similarly, the price of 10-gram gold rose by Rs1,305 to reach Rs402,335.

On Wednesday, gold had recorded a sharp decline of Rs8,600 per tola, reflecting heightened volatility in global markets driven by shifting geopolitical and macroeconomic expectations.

In the international market, spot gold gained around 1% to $4,476.85 per ounce as of 1:41 pm EDT (1741 GMT), while US gold futures for August delivery closed 0.9% higher at $4,505 per ounce, as per Reuters. Market sentiment was influenced by reports of a potential ceasefire arrangement involving Israel and Lebanon, which eased immediate geopolitical risk premiums. This development weighed on the US dollar and pushed bond yields lower, supporting demand for bullion as a safe-haven asset.

Independent metals trader Tai Wong noted that gold remained resilient, holding above its key 200-day moving average despite intra-day pressure, reflecting sustained underlying demand. Meanwhile, silver prices moved in the opposite direction, declining by Rs97 per tola to settle at Rs7,797 in the local market.

Market analyst Adnan Agar, Director at Interactive Commodities, said gold showed intra-day volatility but maintained a firm technical structure. He noted that the market had recently tested lows near $4,423 before rebounding to $4,466, highlighting strong buying interest at lower levels. According to him, the $4,400 level remains a critical support zone for gold, while a sustained move above $4,600 is required to confirm a stronger bullish breakout in the coming sessions. He added that while short-term fluctuations are likely, the broader outlook for gold prices continues to remain positive over the medium term.