PRECIOUS METALS | Dubai Gold Faces Discounts Amid Middle East Conflict

Dubai is currently selling gold at significant discounts due to disruptions caused by the ongoing Middle East conflict, according to Jin10. The conflict has led to flight cancellations, hindering suppliers' ability to transport gold bars from this crucial trade hub. Many buyers have halted new orders, unwilling to pay high transportation and insurance costs without guaranteed timely delivery. Insiders report that traders are offering discounts of up to $30 per ounce below the global benchmark price in London to avoid indefinite storage and financing costs. Despite some gold being loaded onto flights departing Dubai since mid-week, a substantial amount remains stranded as of Friday. The United Arab Emirates, particularly Dubai, serves as a vital center for refining and exporting gold bars to Asian buyers and acts as a transit hub for goods from Switzerland, the United Kingdom, and several African countries. The conflict, now in its seventh day, involves the United States, Israel, and Tehran, with no resolution in sight. The region's airspace has been partially closed following numerous missile attacks by Iran.