BlockBeats News, March 7th, according to Bloomberg, due to flight restrictions, many buyers are unwilling to bear high freight and insurance costs yet cannot guarantee timely delivery, thus delaying new orders. Sources said that in order to avoid paying storage and financing costs indefinitely, traders are selling gold at a discount of up to $30 per ounce from the London spot price. Although some gold has been loaded onto outbound flights since midweek, a large amount of cargo is still stuck as of Friday.
The UAE (especially Dubai) is a significant refining and transshipment center for exporting gold to Asian buyers and a transit route for gold shipments from Switzerland, the UK, and several African countries. With the US-Iran war entering its seventh day with no sign of resolution, UAE airspace is partially closed. Gold is typically transported in the cargo holds of passenger planes, and due to the risks and complexities of overland border crossings, traders and logistics companies are reluctant to transport high-value goods by road to airports in Saudi Arabia, Oman, and other countries.
