Dubai gold selling up to $30 an ounce below London as Middle East conflict disrupts shipments
Mar 7th 2026
Traders in Dubai are offering gold at steep discounts after flight restrictions and stranded shipments raised freight, insurance and storage costs, squeezing physical supply flows to major buyers such as India.
- Dubai traders are discounting gold up to $30 per ounce versus the London benchmark to avoid storage and financing costs.
- Airspace closures and fewer passenger flights have disrupted bullion transport because most gold moves in passenger aircraft cargo.
- Several shipments were stranded this week, though a limited amount of bullion resumed flying midweek.
- Indian buyers have ample inventories now and have delayed purchases, but prolonged disruption could create supply shortages.
- Refiners report doré shortages and say logistics costs for new supply routes have risen about 60 to 70 percent.