Gold Sold at Discount in Dubai as Middle East Conflict Disrupts Bullion Shipments

Gold is being offered at steep discounts in Dubai after the widening Middle East conflict disrupted air travel and delayed bullion shipments from the region’s key trading hub.

Traders are offering discounts of up to $30 per ounce compared to the global benchmark in London as shipments remain stranded due to flight disruptions, according to people familiar with the matter. Buyers have slowed new orders because of sharply rising shipping and insurance costs and uncertainty over delivery timelines.

Many shipments were still stranded on Friday, sources said. However, some bullion began moving again from the middle of the week on limited outbound flights from Dubai.

The United Arab Emirates, particularly Dubai, is a major global hub for refining and exporting gold to buyers across Asia. It also acts as a key transit point for bullion arriving from Switzerland, the United Kingdom and several African nations.

Airspace restrictions have disrupted operations after Iranian missile strikes escalated tensions during the ongoing conflict involving Iran, the United States and Israel. The conflict has now entered its seventh day with no immediate sign of resolution.

Gold is typically transported in the cargo section of passenger aircraft. With flights from the UAE limited, traders and logistics companies are reluctant to move high value shipments by road to airports in neighbouring countries such as Saudi Arabia or Oman due to security risks and logistical complications at land borders.

“Several cargo shipments have been delayed or stranded, leading to short-term tightness in the availability of physical bullion in India,” said Renisha Chainani, head of research at Augmont Enterprises Ltd..

India, one of the largest consumers of gold shipped from Dubai, currently has sufficient supply because imports surged earlier this year.

Chirag Sheth, principal consultant for South Asia at Metals Focus, said buyers can manage the disruption for now because domestic inventories remain high following heavy imports in January.

“As of now, there is ample stock,” he said, “but if this drags on for a few months, then there will be a problem.”

Global gold prices have surged this year. Spot gold has gained nearly 20 percent in 2026 and remains above $5,000 per ounce. However, prices have been volatile this week as the US dollar strengthened.

Supply disruptions are also affecting refiners. MMTC-PAMP, India’s largest precious metals refinery, sources about 10 percent of its doré from a Middle Eastern mine.

Chief Executive Officer and Managing Director Samit Guha said supplies have been disrupted due to the conflict. For new contracts sourced from other regions, logistics costs have surged by 60 percent to 70 percent since the war began.