Due to the war in the Middle East: gold is being sold at significant discounts in Dubai
8 March 13:16
Due to large-scale hostilities and constant missile threats in the region, gold in Dubai began to be offered at significant discounts.
This was reported by [Komersant], citing a Bloomberg publication.
The logistical collapse caused by the cancellation of flights has made it impossible to export bullion from this key global hub as usual.
Traders, trying to avoid huge costs for storing and financing blocked goods, are forced to reduce the price by $30 per ounce compared to the global benchmark in London.
The situation is complicated by the fact that many buyers are refusing to place new orders due to unpredictable insurance costs and the lack of guarantees of timely delivery.
Logistical deadlock
The United Arab Emirates, which imported more than 1,300 tons of gold in 2024, found itself at the center of a transport blockade.
Since the precious metal is usually transported in the cargo holds of passenger planes, the partial closure of the skies due to Iranian missile attacks has paralysed exports.
Traders and logistics companies are shunning alternative land routes through Saudi Arabia or Oman, considering the risks of crossing borders during wartime too high.
Although some shipments began to leave midweek, the bulk of the bullion remains blocked in warehouses.
Record gold prices
Despite local discounts in Dubai, the global price of gold has risen sharply this year, climbing above the $5,000 per ounce mark. The metal is currently trading at around $5,172, although the strengthening of the dollar this week has somewhat dampened the upward momentum.
Experts emphasize that the current stocks of major importers are sufficient, but if the military conflict and transport blockade continue for several months, the global precious metals market will face a serious supply crisis.
