Physical gold shipments to and from Dubai’s bullion hub are expected to slow sharply in the coming days as airlines suspend flights following U.S. and Israeli strikes on Iran and Tehran’s retaliation, according to industry sources.
Since gold is primarily transported by air due to its high value-to-weight ratio and security considerations, flight cancellations have effectively stalled short-term movement.
Dubai serves as a key transit point supplying major markets such as Switzerland, Hong Kong and India. Traders say the disruption may not immediately impact global availability, but prolonged flight suspensions could tighten supply chains and increase volatility in the bullion market.
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The impact on the global supply will depend on the length of disruption, the sources said. They declined to be named because they are not authorised to speak to the press.
Spot gold prices XAU= closed on Friday up 1.7% at $5,277 per troy ounce, their highest since January 30, with many analysts expecting safe-haven inflows into bullion once the market opens on Monday. Gold’s record high was $5,594.82 on January 29.
The market on Monday is likely to be dominated by financial flows on markets in Shanghai, London and New York, another source said.
“The major locations – China, India, New York, London and Zurich – are still okay,” a precious metals trader said.
(With Reuters Inputs)
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
