Gold in Dubai is being sold at a significant discount due to difficulties in exporting the precious metal from the country after the escalation of the conflict in the Middle East, reported Bloomberg, citing its sources.
The price of gold in Dubai has fallen due to flight cancellations, which significantly complicates the transportation of the metal out of the country. The number of buyers has also decreased significantly due to extremely high insurance costs. As a result, traders are offering discounts of up to $30 per ounce compared to the global gold price on the London market.
The UAE is an important hub for processing and exporting precious metals to Asia and Europe, the agency notes.
Geopolitical tensions in the Middle East could contribute to the rise in gold prices to historic highs, with its price potentially reaching $6,000 per troy ounce.