Amid global turmoil, gold prices up by 39pc

KABUL (Pajhwok): The prices of gold have surged by nearly 39 percent this year, fuelling concerns among prospective couples.

Analysts and jewellers attribute the increase to ongoing global conflicts, including the wars between Israel and Hamas, Russia and Ukraine, as well as declining confidence in the US dollar.

In late April 2024, one gram of Arabian gold was sold for 4,200 afghanis in Kabul. As of the same period in 2025, the price climbed to 6,250 afghanis per gram, representing a spike of nearly 39 percent.

Gold prices surge globally

According to global market data, on April 20, 2025, the price of one ounce of gold stood at $3,327, compared to $2,392 on the same date last year.

This indicates an increase of over 39 percent on the international market as well.

Factors behind the increase

Mohammad Fawad, the owner of a jewellery shop in Kabul, told Pajhwok Afghan News the price of gold had consistently risen over the past year.

He cited the wars in Palestine, Syria, and Ukraine, along with the devaluation of the US dollar, as key drivers.

“Since the war between Israel and Hamas, as well as the unrest in Syria, the price of gold has been climbing. Another major factor is the declining public confidence in the US dollar.

“BRICS nations – which now number 32 – are working on launching a common currency to rival the dollar, and this has led to a fall in its value while boosting gold prices,” he explained.

According to Fawad, many governments and European banks have started purchasing gold instead of holding US dollars, further fuelling the rise.

Haji Zakir Arian, a jeweller in the Mashal Trade Market, pointed out:“The gold rate is influenced globally, not by our domestic situation. Fortunately, Afghanistan’s security is now stable. However, global turmoil drives up gold prices. At present, major world powers are investing in gold bars and keeping them in banks instead of relying on cash reserves.”

Since 2021, he noted, instability in the Middle East had caused global gold prices to rise.

“Now, one ounce of gold is priced above $3,200, and it’s expected to reach $4,000. In the past, countries prioritised crude oil, but gold never loses its value, hence the current stockpiling trend.”

Haji Omar Haidari, an adviser to the Jewellers’ Union in Kabul, held a similar view.“Gold prices have gone up significantly over the past year due to political and economic factors –particularly the wars in Ukraine and the Middle East.”

Haidari added: “During times of conflict, warring and even non-warring nations tend to accumulate gold. This trend was evident in 2024, and it continues even today.”

Economic analyst Abdul Nasir Reshtia also cited wars, political friction and general instability in countries like Russia, Ukraine, Palestine, Israel and recent tensions involving Iran and the United States as contributing factors.

“Countries are now goarding gold in their central banks instead of dollars. This shift in demand is a key reason behind the price hike,” he commented.

As demand for a commodity increased, the economist argued, its market price rose accordingly.

Pajhwok reports indicate gold prices have shown an upward trended throughout the previous solar year and into April this year.

However, the upward trend intensified over the past four months, following the tariff war triggered by US President Donald Trump’s announcement.

Since Trump returned as US president in January 2025, his administration has imposed a flurry of tariffs, leading to increased global prices, including that of gold.

Public concerns

Farzana Ahmadi, a resident of the Dar-ul-Aman neighbourhood of Kabul, expressed concern at the continuous hike in gold prices.

She deplored her fiancé had been unable to buy the gold demanded by her family, even though their engagement took place four years ago.

“My in-laws are struggling financially and can’t afford to buy gold. My fiancé is now pondering over going abroad to earn money,” she said.

Similarly, Nargis Stanikzai, a resident of the Kart-e-Naw locality of Kabul, said:
“I went to the market to buy gold after saving money with great hardship. Everyone says gold is a woman’s true asset.

“I wanted to invest, but the prices were so high that I couldn’t even afford low-karat gold,” she said, adding gold, as a valuable metal, had been treasured since ancient times.

Zabihullah, another Kabul resident, also highlighted the impact of high gold prices on weddings, noting many families were facing financial challenges due to the rising cost jewellery.

sa/mud