Dubai gold falls below London due to flight disruptions

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Dubai gold falls below London due to flight disruptions

March 10, 2026

DUBAI,— Gold prices in Dubai are trading below London levels as travel restrictions caused by the ongoing Middle East conflict keep more bullion in the local market.

Analysts and traders say demand remains weak due to uncertainty over the conflict’s duration.

Physical gold flows through Dubai, a key hub that supplies Switzerland, Hong Kong, and India, have been disrupted for the past 10 days.

The U.S.–Israeli conflict with Iran has led to widespread passenger flight cancellations across the region, limiting shipments of bullion.

Iran has launched missile and drone strikes on multiple sites across the Gulf region. According to reports, the attacks hit major airports, seaports, hotels, and residential areas in Dubai and Abu Dhabi in the United Arab Emirates.

A Dubai-based bullion dealer said the market continues to trade at a discount, with price differences ranging from $10 to $30 per troy ounce in the thin market.

The dealer added that demand is soft in both India, one of the world’s largest gold consumers, and the Middle East. Many buyers are postponing purchases amid price volatility.

Spot gold prices in London have fallen 6% since an initial safe-haven surge when the conflict began on February 28. Bullion was last valued at $5,109 per troy ounce, while oil prices rose sharply.

Nicky Shiels, head of metals strategy at MKS PAMP, told Reuters that key uncertainties remain, including the length of the conflict, potential escalation, and the impact on inflation.

She noted that the Dubai discount mirrors patterns seen during the 2011 Arab Spring, when regional prices also fell below global levels.

Analysts at Heraeus said the market’s reaction to the Middle East conflict has been more muted than expected. The subdued response may indicate that investors expect the crisis to be short-lived.

They compared the situation to Russia’s invasion of Ukraine in February 2022, when gold prices initially rallied for two weeks before returning to largely unchanged levels by year-end.

(With files from Reuters)