Pakistan’s foreign exchange reserves rose marginally during the week ended September 18, while gold prices fell for a fifth consecutive session.
Data released by the State Bank of Pakistan (SBP) showed that reserves held by the central bank increased by $11 million to $21.4 billion.
The country’s total liquid foreign exchange reserves stood at $26.81 billion as of September 18. Commercial banks held $5.41 billion of the total.
The Pakistani rupee also gained slightly against the US dollar in the inter-bank market on Thursday. It closed at Rs277.17, compared with Rs277.20 a day earlier.
In global markets, the US dollar remained near a two-month high. Strong manufacturing data renewed concerns about inflation and interest rates. A weak US Treasury auction also pushed bond yields higher.
The stronger dollar and higher yields added pressure on gold prices. Rising crude oil prices also increased concerns about inflation, potentially limiting the US Federal Reserve’s room to cut interest rates.
Robert Pattinson Teases Ambitious Left Turn in The Batman Part II
In Pakistan, gold prices dropped Rs5,600 per tola to Rs448,336, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The price of 10-gram gold fell Rs4,801 to Rs384,375.
Gold had closed at Rs453,936 per tola on Wednesday after declining by Rs1,800.
Internationally, spot gold fell 0.9% to $4,249.37 per ounce by 11:20am ET (1520 GMT), according to Reuters. US gold futures for December delivery declined 0.8% to $4,285 an ounce.
Oil prices gained more than 1% on Thursday. The increase added to inflation concerns and contributed to pressure on bullion.
The US dollar climbed to a two-month high, while the 10-year US Treasury yield rose sharply. A stronger dollar makes gold more expensive for buyers using other currencies. Higher yields can also reduce demand for gold because the metal does not generate interest.
Investors are also closely watching the Federal Reserve’s interest-rate outlook. Expectations for higher rates for longer can weigh on gold prices.
In the domestic market, silver prices also declined. The price fell Rs171 to Rs6,837 per tola.
