Gold is being sold at significant discounts in Dubai as suppliers struggle to transport the precious metal out of the key trading hub following flight suspensions caused by the Middle East conflict.
Many buyers have paused new orders, unwilling to cover unusually high shipping and insurance costs, with timely delivery also uncertain. As a result, traders—preferring to avoid indefinite storage and financing fees—are offering gold at discounts of up to $30 per ounce below the London global benchmark price, according to insiders.
Although some gold bars were loaded onto flights departing Dubai by mid-week, a large volume of shipments remained grounded as of Friday.
The UAE has emerged as a major gold hub in recent years. The country, particularly Dubai, serves as an important center for precious metals refining and exports, supplying buyers across Asia and facilitating shipments to and from Switzerland, the UK, and several African nations. However, parts of UAE airspace have been closed due to missile attacks by Iran, as the war involving the U.S. and Israel against Tehran entered its seventh day with no clear end in sight.
Renisha Chainani, Head of Research at Augmont Enterprises Ltd., one of India’s leading gold trading firms, stated, "Multiple shipment delays or hold-ups have led to short-term tightness in physical gold supply in India."
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