Gold in Dubai Discounted by Up to $30 per Ounce Amid War
Gold held in Dubai is now being sold at steep discounts after the war in the Middle East disrupted air routes and the distribution of precious metals from this trading hub. Citing Bloomberg on Saturday 7 March 2026, many buyers have chosen to delay new orders as shipping and insurance costs have surged, while delivery timelines remain uncertain. Consequently, traders are offering discounts of up to $30 per ounce compared with the global benchmark price in London. The information was provided by several sources familiar with the situation who asked not to be named due to market data discussions.
The United Arab Emirates (UAE), particularly Dubai, is an important hub for refining and exporting gold bars to various Asian countries. The region is also a distribution route for gold from Switzerland, the UK and several African countries. However, UAE airspace has been partially closed after a volley of Iranian missiles were fired as the war between the United States and Israel against Iran widens, now in its seventh day with no sign of abatement.
Typically, gold is transported via the cargo holds of passenger aircraft. With flight restrictions in the UAE, traders and logistics firms are reluctant to ship high-value cargo by road to airports in other countries such as Saudi Arabia or Oman due to border-crossing risks.
Renisha Chainani, head of research at Augmont Enterprises Ltd., said some cargo shipments have been delayed or even held up. She added that this condition is causing physical gold supply to be tighter in the short term in India. Nevertheless, buyers in India, one of Dubai’s largest gold consumers, can still wait because short-term demand is weak and inventories remain ample.
Chirag Sheth, Asia South lead analyst at Metals Focus, said India’s gold stocks are currently abundant following large import in January. Over the course of this year, spot gold prices have risen by almost 20 percent and briefly traded above US$5,000 per ounce. However, price movements remain volatile and the precious metal came under pressure this week as the US dollar strengthens.