The tense situation in the Middle East and military conflicts surrounding Iran have severely impacted the Dubai gold market. Due to suspended flights and tightened security measures, it has become impossible to transport precious metals out of this major trading hub. As a result, traders are forced to sell gold up to 30 dollars below global market prices to cover storage costs.
Dubai is one of the most important hubs for gold export and transit worldwide. However, the closure of airspace due to the war in the region has disrupted logistics. Since gold is typically transported in the cargo holds of passenger aircraft, the cancellation of flights has left shipments stranded at airports. Land transport is virtually non-existent due to security risks.
This situation has begun to be felt in India, one of the largest markets for gold supply. Indian analysts note that while current reserves are sufficient, the situation could become critical if logistical disruptions continue for several months. Furthermore, production costs have risen by up to 70 percent due to raw material supply issues.
Experts are concerned that instability in the Middle East could have a long-term negative impact on the precious metals trade. While gold price volatility is currently being observed, logistical problems have already become a major headache for traders.
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