SBP’s FX rises by $11m to $21.4b

The total reserves included $21.4 billion held by the SBP and $5.41 billion held by commercial banks.Furthermore, the Pakistani rupee gained Rs0.03 against the US dollar in the inter-bank market on Thursday, closing at 277.17, compared with 277.20 a day earlier.Internationally, the US dollar held near a two-month high after strong manufacturing data revived inflation concerns and expectations of higher rates, while a weak US Treasury auction pushed yields higher.Meanwhile,….

The price of 10-gram gold declined by Rs4,801 to Rs384,375.

Gold had closed at Rs453,936 per tola on Wednesday after losing Rs1,800.In the international market, spot gold fell 0.9% to $4,249.37 per ounce by 11:20 am ET (1520 GMT), after touching its lowest level since September 16, as per Reuters.

US gold futures for December delivery declined 0.8% to $4,285 an ounce.The decline came as higher oil prices reinforced concerns over inflation, potentially limiting the scope of monetary easing by the US central bank.

Oil prices rose more than 1% on Thursday, adding to inflationary pressures.Meanwhile, the US dollar climbed to a two-month high, while the yield on the 10-year US Treasury note rose to its highest level in two decades.

A stronger dollar generally weighs on gold by making the dollar-denominated metal more expensive for holders of other currencies.

Higher Treasury yields also reduce the appeal of non-yielding bullion.Market participants have increasingly focused on the US Federal Reserve's rate outlook following a more hawkish shift in expectations.

Higher-for-longer interest rates tend to put pressure on gold, which does not generate any yield.

In the domestic market, silver prices also declined, falling Rs171 to Rs6,837 per tola.

SBP's FX rises by $11m to $21.4b Updated 5 minutes ago Total reserves stand at $26.8b; gold price falls Rs5,600 per tola.