Gold and silver shipments to Dubai have been placed amid the ongoing conflict in the Middle East, creating significant disruptions to global bullion flows and challenging the precious metals industry.
The United Arab Emirates (UAE) plays an important role in the metal market, particularly in refining and exporting gold to Asian buyers and acting as a conduit for shipments from Switzerland and London. Bloomberg.
However, the latest wave of Iranian missile attacks has prompted a partial closure of UAE airspace, halting operations at Dubai airports and affecting passenger and cargo operations.
Traders and logistics companies have reported unspecified disruptions in their metal shipments through Dubai, with efforts focused on shipments destined for transit through the emirate.
Transporting high-value cargo by land to other regional airports poses significant risks that make it an unfeasible alternative.
Traditionally, gold has been economically transported between trading hubs by passenger aircraft at less than $1/oz per trip.
However, the volume that a single flight can carry is limited by value due to the insurable tonnage limit.
Precious metals logistics industry consultant and veteran Lars Johansen was quoted by the news agency as saying that underground transport introduces complex challenges, especially when crossing international borders.
While the current disruption is expected to be temporary, a prolonged suspension could challenge traders in India and other markets that depend on the UAE metal.
Metals Focus managing director Philip Newman said premiums for bullion in Saudi Arabia rose on Monday, reflecting concerns about product availability.
Commercial flight delays caused by US and Israeli actions against Iran have reportedly affected more than 12,300 flights worldwide since the attacks began. Flight 24.
“Middle East violence halts gold and silver shipments in Dubai” was originally created and published by Mining Technologies, a brand owned by Global Data.
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