DUBAI – As the escalating conflict in the Middle East following Israeli strikes on Iran continues to rattle global markets, gold traders in the United Arab Emirates are being forced to sell their stocks at significantly discounted rates.
According to international media reports, the heightened regional tensions have led to widespread flight cancellations, severely hampering the ability of suppliers to transport gold through major trade hubs. This logistical gridlock has created a unique bottleneck in the physical gold market.
Industry experts report that many traditional buyers are hesitant to commit to new purchases. This reluctance stems from a surge in shipping and insurance premiums—unforeseen costs that many are unwilling to absorb—coupled with a lack of guarantee regarding timely delivery.
Faced with mounting storage fees and funding costs, UAE-based traders have begun offloading their inventory at prices approximately $30 per ounce lower than the London global benchmark.
The UAE, particularly Dubai, serves as a critical axis for the global gold trade. It acts as a primary export gateway to Asia and a vital transit point for gold arriving from Switzerland, the United Kingdom, and various African nations. The current disruption highlights the vulnerability of these supply chains to regional geopolitical instability.
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