KABUL (Pajhwok): Gold prices have declined in the capital, Kabul, in recent days, with jewellers attributing the drop to falling global prices, while experts point to an appreciation of the US dollar, increased gold sales and a shift in investment towards oil and gas as key factors.
However, they say the decline may be temporary.
A member of the Kabul Jewellers’ Union said the price of one gram of 21-carat Arabian gold stood at 8,600 afghanis on Tuesday, compared to over 10,000 afghanis in January and February 2026.
Gold prices have also fallen in global markets.
According to Bloomberg, the price of one ounce of gold in global markets stood at $4,324 on Tuesday, down from around $5,417 about two and a half months earlier.
Jewellers and economic analysts say the appreciation of the US dollar has also contributed to the decline, alongside other factors.
Reports indicate that the US dollar has strengthened in recent weeks in global markets, rising by an average of about three per cent against foreign currencies.
Haji Mohammad Hussain, a money exchanger at Sara-i-Shahzada in Kabul, said the buying rate of one US dollar stood at 64.20 afghanis on Tuesday, compared to 63.50 afghanis on 6 March 2026.
Jewellers: Global developments behind price drop
Mohammad Fawad, a jewellery shop owner in Kabul, said the price of 21-carat Arabian gold had reached 8,600 afghanis per gram on Tuesday, compared to over 10,000 afghanis in January–February 2026.
He attributed the decline to falling global prices, saying: “The reason is wars and certain global tensions. On Monday, the price of one ounce of gold in global markets was around $4,500, but today it has dropped to just above $4,300 dollars.”
He added that, given current global conditions, some analysts suggest gold prices could have been even higher.
Meanwhile, Haji Mohammad Zakir Aryan, a jeweller at Mashal market in Kabul, said gold prices remain volatile and it is unclear whether they will rise or fall in the future.
“Given developments in the Middle East and ongoing conflicts, many investors are shifting their focus from gold to oil and energy,” he said.
He added that some Gulf countries have sold part of their gold reserves to cover war-related and other expenses, which has also contributed to the decline.
Experts: Stronger dollar, shifting investments key factors
Economic analyst Abdul Nasir Reshtia said gold remains a safe asset for both the public and investors, but its price depends on market conditions.
“When the value of the US dollar rises, gold prices usually fall,” he said, adding that rising oil prices can also influence the gold market.
He noted that many investors who had previously converted their assets into gold are now selling to secure profits, increasing supply and putting downward pressure on prices.
Another economic expert, Qais Mohammadi, said gold price declines are typically driven by several factors, including a stronger US dollar.
He said ongoing conflicts in some Arab and Gulf countries have left large quantities of gold in Dubai and the wider region, with transportation facing challenges, suggesting the current decline is largely temporary.
“Some countries that previously invested in gold are now shifting their investments towards oil and gas, which has also contributed to the decline,” he added.
However, Mohammadi believes the drop is temporary and that prices may rise again after some time.
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