Escalating tensions in the Gulf involving Iran, Israel, and United States have triggered steep discounts on gold in Dubai. The conflict has severely disrupted air and maritime transport, forcing bullion dealers to sell gold at approximately $30 (around ₹2,700) below international rates per ounce (31.10 grams). Delivery delays and rising transport costs have reduced buyer interest despite Dubai being a major global hub for gold trade.
Transport constraints have made it difficult to move gold from Dubai to international markets. Airlines are operating at limited capacity, and dealers are hesitant to place new orders due to potential delays and high insurance costs. Consequently, traders are selling their existing inventory at lower prices to avoid idle stock.
Typically, gold is safely transported via passenger flights, but with UAE flight disruptions, shipments are being rerouted through neighboring countries such as Saudi Arabia and Oman. However, elevated international prices above $5,100 per ounce have increased security risks for cross-border shipments, discouraging logistics firms from taking on these orders.
In India, gold demand remains strong, supported by sufficient stock from January imports. Experts note that while delivery from Dubai may face delays, it is unlikely to significantly affect domestic supply. However, raw gold imports are facing cost pressures, with transport expenses increasing by 60–70% due to the conflict, a situation expected to continue until stability returns in the Gulf.