Dubai gold flows stall amid regional flight cancellations

Physical gold shipments through the Dubai bullion trading hub are expected to face severe restrictions in the coming days following the suspension of regional flights. This disruption stems from military strikes carried out by the United States and Israel against targets in Iran, as well as Tehran's subsequent military response. Dubai serves as a pivotal transit point for gold destined for Switzerland, Hong Kong, and India. Due to the high value of the metal, it is almost exclusively transported by air to satisfy insurance and security protocols. With most airlines cancelling flights to and from the hub, the physical movement of bullion has come to a temporary standstill. > It looks like most if not all airlines have cancelled their flights, so not going to be any gold moving for a couple of days. While the logistical bottleneck in Dubai is significant, other major global trading centers remain operational. Precious metals traders noted that markets in China, London, New York, and Zurich have not yet seen similar physical constraints. Investors are closely watching the impact on mining equities and major producers such as Barrick Gold Corporation as the market reacts to the heightened geopolitical risk. Spot gold prices closed on Friday at $5,277 per troy ounce, a 1.7% increase and the highest price point since January 30. The market is currently hovering below the record high of $5,594.82 reached on January 29. Analysts expect the opening of markets on Monday to be dominated by financial flows in Shanghai and New York as investors seek safety in bullion amid the ongoing conflict.