Gold is being sold at big discounts in Dubai amid the ongoing war in the Middle East due to disrupted flights and delayed shipments from the region’s key trading hub, reported Bloomberg.
Traders are offering discounts of up to $30 per ounce compared with the global benchmark in London as logistics bottlenecks leave shipments stranded and raise shipping and insurance costs. Many buyers have paused new orders due to uncertainty over delivery timelines.
Several cargo shipments remained delayed by the end of the week, although some gold shipments resumed flights from Dubai earlier in the week after limited air traffic operations restarted.
The disruption has emerged after parts of the United Arab Emirates’ airspace were restricted following missile attacks linked to the widening regional war.
Gold is typically transported in the cargo holds of passenger aircraft, making the suspension of flights a major obstacle for bullion traders.
Logistics companies have also avoided transporting high-value cargo by road to airports in neighboring countries such as Saudi Arabia and Oman due to security concerns.
Dubai has become one of the world’s largest bullion trading centers, with the UAE importing about 1,392 tons of gold worth more than $100 billion in 2024. The city serves as a key refining and export hub for shipments to Asian markets.
The disruption has also affected supply chains in India, one of the largest buyers of gold shipped from Dubai.
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