The State Bank of Pakistan’s (SBP) foreign exchange reserves declined by $229 million during the week ended July 24, 2026, settling at $17.03 billion, the central bank said. The drop was attributed to external debt repayments.

Pakistan’s total liquid foreign reserves stood at $22.4 billion as of July 24. Of these, the SBP held $17.03 billion while the net reserves of commercial banks stood at $5.4 billion.

Furthermore, the Pakistani rupee closed at 277.81 against the US dollar in the inter-bank market on Thursday, gaining Rs0.01 from Wednesday’s close at 277.82, as the greenback stabilised in early Asian trading after the Federal Reserve held rates steady.

Meanwhile, gold prices in the local market climbed, tracking gains in the international market, where the metal advanced after the US dollar weakened and inflation data softened, prompting traders to scale back bets on further interest rate increases.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-carat gold rose Rs1,000 to Rs427,436. The 10-gram rate increased by Rs857 to Rs366,457. A day earlier, the per-tola price had fallen by the same margin to Rs426,436.

Spot gold was up 0.8% at $4,098.98 per ounce by 11:35 am EDT, as per Reuters. US gold futures for August delivery gained 1.4% to $4,097.70.

The Federal Reserve held rates steady on Wednesday. Fed Chair Kevin Warsh offered limited clarity on the policy path, while June inflation figures showed a slowdown. Traders have trimmed expectations of a rate hike in September. Analysts, however, caution that the Middle East conflict could reverse the recent cooling in US inflation.

Silver moved in the opposite direction, declining by Rs76 to Rs6,215 per tola. Adnan Agar, Director at Interactive Commodities, said the gold market remained range bound. Bullion touched the low of $4,028 and the high of $4,120 before settling near $4,107, still in what he described as a danger zone.

“The biggest issue right now is that after the FOMC meeting, the US bond yields aren’t dropping; in fact, they’re creeping up even further,” Agar said. The 30-year bond yield has reached levels not seen since 2007, while the 10-year yield is around 4.65%. A move above 5% would turn gold bearish in the short term, he added.

Oil remains the key wild card. A rebound towards $95-97 a barrel will pressure equities and gold alike. Agar noted that the prolonged US-Iran tensions showed little signs of a quick resolution and could keep crude on an upward trajectory in the coming days. Market participants are watching bond yields and oil prices closely for the next directional cue, with geopolitical risks continuing to dominate the outlook for precious metals.