Dubai Gold Goes on Discount Sale Amid US-Iran War in Middle East | Check Latest Dubai Gold Rates

The intensifying Middle East crisis following the United States-Iran conflict has triggered a discount sale of gold in Dubai. With several countries in the region shutting their airspace due to the war, gold suppliers and traders are struggling to transport the precious metal out of the key trading hub. The growing uncertainty has forced many traders in Dubai to sell gold at discounted prices rather than bear higher shipping and insurance costs, reported Bloomberg.

Traders are selling gold at a discount of around $30 per ounce (Rs 2,758 discount for every ounce) to the London benchmark, as per a Bloomberg report. Additionally, buyers are hesitant of placing fresh orders amid costly freight, higher insurance and uncertainty over the Iran-US war.

Dubai Gold Rate Today

While, certain gold traders may sell the precious metal at a discounted price due to logistics constraints, the gold rate in Dubai jumped on Sunday, March 8. The price of 24 karat gold in Dubai increased to Rs 1,55,998 per 10 grams. Whereas, the rate of 22 karat gold in Dubai surged by Rs 751 per 10 gram to Rs 1,44,485. The rate of 18 karat gold rate in Dubai jumped by Rs 625 per gram to Rs 1,18,766.

Gold shipments Struck in the Middle East

Multiple shipments carrying a large volume of bullion remain stranded in the Middle East till Friday, reported Bloomberg, citing sources. However, some consignments will move out on flights from the middle of this week. But extremely high storage fees and financing charges have put pressure on traders. Hence, many of them have preferred to cut prices and sell the precious metal rather than keep paying to hold unsold bars in vaults around Dubai.

Dubai Continues To Remain Key Trading Hub For Gold

The United Arab Emirates (UAE), and especially Dubai, stands as a crucial location for gold trading as it is the hub for refining and re-exporting bullion to buyers across Asia. Dubai also handles flows from Switzerland, the UK and several African producers. That network is under strain because the UAE airspace has been partially shut after a barrage of Iranian missiles.

While flight services are functional in certain countries like Saudi Arabia, Oman, etc, gold traders in Dubai and the UAE are unwilling to send high-value shipments overland, citing security concerns and extra complications when crossing multiple land borders.

Impact on Indian Bullion Supply

India stands as one of the biggest importers of gold from Dubai and UAE. As per Bloomberg report, gold traders in India are already feeling some strain as physical inflows slow and dealers adjust to the new shipping risk and cost structure.