Global market tensions and rising tariffs push gold out of reach for many Afghan families
KABUL, Afghanistan – The price of gold has surged sharply in both global markets and Afghanistan, leaving many Kabul residents unable to afford traditional gold purchases, particularly for weddings and other celebratory events.
Local gold buyers say their purchasing power has diminished due to the economic downturn, forcing them to reduce or postpone jewelry purchases.
“I came to the market because we have a wedding, but prices have increased drastically. With our current financial situation, buying gold is nearly impossible,” said Mohammad Kabir, a resident of Kabul.
Another local shopper, Faisal, echoed similar concerns:
“Gold has become unaffordable. People are suffering economically, and we hope prices drop so we can buy what we need.”
Gold merchants also report a noticeable drop in sales due to the price hikes.
Hashmatullah, a gold seller in Kabul, noted:
“Previously, people could buy a locket for 200,000 Afghanis. Today, that amount buys much less gold. That’s why our business has slowed down.”
According to the Kabul Goldsmiths’ Union, the price hike is linked to global political and economic tensions, particularly the strained economic relations between China and the United States, as well as increased international tariffs.
“The global instability is pushing people to invest in gold as a safe haven. The result is higher prices,” said Mohammad Bashir Ehsanzada, head of the Kabul Goldsmiths’ Union.
“Unless regional and global tensions subside, we’re unlikely to see gold prices fall.”
Current Gold Prices in Kabul (as of May 5, 2025):
- 18-karat gold: 6,300 AFN per gram
- 21-karat gold: 7,300 AFN per gram
- Global market price: $107 USD per gram
The Union reports that gold prices have risen by nearly $50 per gram compared to last year.
