Gold Trade Disrupted Amid Airline Cancellations from Dubai Hub

Gold trade through Dubai's critical bullion hub is expected to face significant challenges as several airlines cancel flights due to military activities by the U.S. and Israel against Iran and subsequent Iranian retaliation. Three sources from the metals industry have confirmed the impending slowdown.

Dubai plays a crucial role as a gold supplier to countries such as Switzerland, Hong Kong, and India, where the precious metal is in high demand. With airlines grounding flights, gold transport by air is halted due to security and insurance concerns, impacting the global supply chain.

As a result of the flight cancellations, the immediate impact on the global gold market is contingent on the disruption's duration. Spot gold prices closed at a peak of $5,277 per troy ounce, with a potential for increased demand as financial markets in major locations like Shanghai, New York, and London react.