Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $11 million during the week ended November 6, 2026, reaching $21.57 billion, according to data released by the central bank on Thursday. The country's total liquid foreign exchange reserves, including those held by commercial banks, stood at $26.84 billion, compared with $26.86 billion in the preceding week. The net reserves held by commercial banks amounted to $5.27 billion during the latest week. With the further increase in reserves, the import cover for the country has reached 3.03 months, according to Arif Habib Limited (AHL). The Pakistani rupee edged up by Rs0.01 against the US dollar on Thursday, closing at Rs276.61 in the inter-bank market, compared with Wednesday's close at Rs276.62. Meanwhile, gold prices in Pakistan plunged by Rs10,900 per tola, extending their decline for a third consecutive session, as a sharp sell-off in the international market dragged bullion prices to their lowest level in more than a year amid rising oil prices, inflation concerns and diminishing hopes of a peace deal in the Middle East. In the local market, gold price per tola fell to Rs416,536, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold declined by Rs9,345 to settle at Rs357,112. On Wednesday, gold price per tola had dropped by Rs3,400 to Rs427,436 while on Tuesday it dipped Rs1,500 to Rs430,836. The cumulative decline over the past three sessions came in at Rs15,800 per tola. Internationally, spot gold fell 3% to $3,867.96 per ounce by 10:01 am ET (1501 GMT), after touching its lowest level since October 2025 earlier in the session, as per Reuters. US gold futures for December delivery declined 3.2% to $3,872 per ounce. The international sell-off gathered pace as oil prices climbed, reviving concerns about higher inflation and the possibility of interest rates remaining elevated for longer. Higher rates tend to weigh on gold, which does not offer any yield, by increasing the opportunity cost of holding the precious metal. Market sentiment was further pressured by diminishing expectations of a diplomatic breakthrough in the Middle East. US President Donald Trump said the United States did not need a deal with Iran, adding to uncertainty about the regional situation and its potential implications for energy markets. Meanwhile, a stronger US dollar also weighed on bullion, with the greenback holding near a 19-month high, making dollar-denominated gold more expensive for holders of other currencies. Investors are now awaiting US Producer Price Index (PPI) data due on Friday for further clues about inflationary pressures and the Federal Reserve's monetary policy outlook. Silver prices in the domestic market also declined, falling Rs190 to Rs5,578 per tola.