Smoke billowing after the attack
The Taliban said they carried out the assault.
More than half a dozen explosions were heard as they clashed with security personnel at the palace's eastern gate, the defence ministry and a CIA station.
However, the police claims that all of the attackers were killed.
The militants initially targeted the palace's eastern gate - a few hundred metres from the actual building - where dozens of journalists had gathered for a news conference with Mr Karzai scheduled for 09:00.
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