Gold prices in Ethiopia reached a record 25,000 birr per gram on Thursday, extending a sharp upward trend driven by both global and local factors, Birrmetrics reported. The rate, which stood at 24,000 birr earlier in the week, marks a significant rise from 20,000–21,000 birr last week and 18,500–19,000 birr a month ago.

At the National Bank of Ethiopia (NBE), the official buying rate climbed to 20,364.40 birr per gram on Friday, compared with 19,572.70 birr on Wednesday and 17,021.96 birr in September. One year ago, the NBE’s rate was just 10,319.46 birr per gram. The jump mirrors the global price rally and the weakening of the birr following Ethiopia’s transition to a floating exchange rate regime.

Internationally, gold has soared past 4,300 US dollars per ounce, its highest point on record. Analysts link the surge to mounting geopolitical tensions, inflationary pressures, and expectations of interest rate cuts by major central banks. Emerging economies are increasingly diversifying into gold as a hedge against uncertainty, boosting demand worldwide.

Ethiopia’s market remains unusually expensive by comparison. At roughly 174 US dollars per gram, domestic prices far exceed those in the United Arab Emirates and South Africa, where 24-karat gold trades at about 140 and 139.5 US dollars per gram, respectively.

Traders in Addis Ababa described current conditions as “cool but cautious,” with buyers waiting for clearer signals. “The price changes every day,” said one trader. “If you delay by even a few hours, the rate can jump again. Many of us are simply observing until the market settles.” Others noted that while volatility has reduced transaction volumes, expectations of further price increases continue to draw speculative interest.

Ethiopia still depends heavily on artisanal output, much of which bypasses formal channels. Around 61% of national production is estimated to move through informal routes, often sold locally or smuggled abroad.

Formal deliveries, however, are improving. In the 2024/25 fiscal year, about 37 tons of gold were channelled through official platforms, generating more than $2.1 billion in revenue. The government’s incentive schemes, including premium payments above global market rates and duty-free privileges for equipment imports, have encouraged compliance, though operational and logistical bottlenecks remain.

Industry observers say that ongoing depreciation, inflation, and limited foreign currency availability are prompting investors to move toward “trusted commodities” such as gold—seen both as a global hedge and a psychological anchor in times of economic stress.