Conflicts in the Middle East affected the Dubai gold market

The escalation of the situation in the Middle East and military clashes related to Iran are significantly impacting the gold market in Dubai. This was reported by Zamin.uz.

Due to the suspension of flights and increased security measures, it has become difficult to transport precious metals out of this major trading hub. As a result, traders are forced to sell gold at prices up to $30 lower than the global market rate.

Dubai is considered one of the important centers for gold export and transit worldwide. However, the closure of air routes due to the regional conflict has disrupted logistics.

Since gold is usually transported in the cargo compartments of passenger planes, canceled flights have caused shipments to remain at airports. Transportation by land is almost not carried out due to security concerns.

This situation has also started to be felt in major gold-consuming markets such as India. According to Indian analysts, reserves are currently sufficient, but if logistical disruptions continue for a long time, the situation could become complicated.

Problems in raw material supply have increased production costs by up to 70 percent. Experts are concerned that instability in the Middle East may have a long-term negative impact on precious metals trade.

Although there have been changes in gold prices recently, logistical problems remain a serious issue for traders.