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Dubai Gold Experiences Rare Discounted Trading Due to Disruption in Middle East Logistics
Summary: According to reports, a significant amount of gold stranded in Dubai is being sold at a noticeable discount due to flight cancellations and logistics disruptions caused by the Middle East conflict. Sources revealed that many buyers have paused new purchase orders due to exceptionally high transportation and insurance costs, as well as uncertainty in timely ...
According to reports, a significant amount of gold stranded in Dubai is being sold at a noticeable discount due to flight cancellations and logistics disruptions caused by the Middle East conflict. Sources revealed that many buyers have paused new purchase orders due to exceptionally high transportation and insurance costs, as well as uncertainty in timely delivery. As a result, under the pressure of indefinitely bearing storage and capital costs, traders have started selling gold at discounts of up to $30 below the London benchmark price per ounce.
Insiders mentioned that while some gold has been loaded onto flights leaving Dubai since mid-week, many shipments of gold remained stranded as of Friday. The UAE, particularly Dubai, is a crucial global hub for gold refining and trading, exporting gold to various parts of Asia and serving as a key transit point for gold shipments to Switzerland, the UK, and several African countries. With the spread of Middle East conflicts leading to the closure of parts of UAE airspace, and ongoing military strikes by the US and Israel against Iran entering the seventh day with no apparent end in sight. (Financial Association)
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