Middle East War Strands Gold in Dubai, Forces Steep Discounts

• Gold in Dubai is being sold at a discount of up to $30 an ounce below the global benchmark due to the widening war in the Middle East.
• Flights are grounded and airspace partially closed, severely hampering the movement of bullion out of Dubai, a key trading hub.
• Buyers are reluctant to place new orders due to exceptionally high shipping and insurance costs with no guarantee of prompt delivery.
• India, a major gold consumer, faces short-term tightness in physical bullion availability, though current demand is muted and inventories are high.
• Refiners like MMTC-PAMP face disruptions in sourcing doré, with logistics costs for new contracts soaring by 60-70% since the conflict began.