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Oil held the biggest decline in a week on cautious optimism about easing tensions in the Middle East and the outlook for supply.

Brent traded near $65 a barrel after closing 1.6% lower on Thursday, while West Texas Intermediate was below $62. Israel approved a framework that would see Hamas release hostages in exchange for prisoners, a major step forward for a peace agreement to end the bloody conflict in Gaza.

KARACHI:

Pakistan’s foreign exchange reserves recorded a marginal increase during the week ended October 3, 2025, despite substantial external debt repayments.

According to data released by the State Bank of Pakistan (SBP), the central bank’s reserves rose by $20 million to $14.42 billion. During the same period, the SBP made external debt payments, including the repayment of a $500 million Pakistan Sovereign Eurobond.

The country’s total liquid foreign reserves stood at $19.81 billion, comprising $14.42 billion held by the SBP and $5.39 billion held by commercial banks.

Meanwhile, the Pakistani rupee recorded a slight appreciation against the US dollar on Thursday, rising by Rs0.01 in the inter-bank market. By the end of the trading session, the rupee stood at 281.20 against the greenback, compared to 281.21 a day earlier.

Moreover, gold prices in Pakistan remained unchanged at Rs425,178 per tola, despite a sharp fall in the international market where bullion lost over 1% and slipped below the $4,000 per ounce mark. The global decline followed a stronger US dollar and profit-taking by investors after the announcement of a ceasefire deal between Israel and Hamas.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 10 grams of gold also stayed stable at Rs364,521. A day earlier, gold had surged by Rs8,400 per tola, reaching a record high of Rs425,178 amid a rally in global markets that pushed bullion past the $4,000 milestone for the first time.

Adnan Agar, market analyst and Director at Interactive Commodities, noted while gold prices hit historic highs, some correction was expected due to overbought conditions and global market pressure. He added that silver, which also reached an all-time high earlier this week, has started showing signs of consolidation as investors turn cautious after the extraordinary rally.

Silver, spurred by momentum in the gold market, strong investment demand and a persistent supply deficit, rose above $50 per ounce for the first time, according to Reuters.

Spot gold fell 1.1% to $3,993.41 per ounce by 12:38 pm ET (1638 GMT). US gold futures for December delivery fell 1.6% to $4,006.40.

The US dollar index was up 0.5% and hovered near a two-month high, making dollar-priced bullion more expensive for overseas buyers.

“Speculators are taking some gold chips off the table as the Gaza ceasefire takes effect since it reduces the temperature in a historically volatile region,” said Tai Wong, an independent metals trader.