BlockBeats News, March 6th, due to the Middle East conflict leading to flight cancellations and hindering suppliers’ ability to ship gold bars out of this key trading hub, Dubai Gold is selling off at a significant discount. Many buyers have ceased placing new orders as they are unwilling to pay exceptionally high transportation and insurance costs in a situation where timely delivery cannot be guaranteed. According to sources familiar with the matter, in order to avoid indefinite payment of storage and financing costs, traders are offering discounts of up to $30 per ounce above the London global benchmark price.
Sources said that despite some gold shipments having left Dubai by midweek, a large amount of cargo was still stuck on Friday. The UAE (especially Dubai) is a major center for refining and exporting gold bars to buyers across Asia and serves as a transit hub for goods from Switzerland, the UK, and several African countries. With the war between the US, Israel, and Tehran entering its seventh day with no signs of resolution and the region’s airspace partially closed due to heavy missile attacks from Iran, (Jinshi)
