Due to the war in the Middle East and canceled flights on Friday and Saturday Several shipments of gold that were supposed to go to foreign buyers got stuck in Dubai. Many of them refrained from making purchases so as not to incur very high transport and insurance fees and have no guarantee that the gold will reach them on the agreed date..
See also: This is how the rich get out of the Middle East. A fortune for flights and a chauffeur to the border
Gold is usually transported in the cargo hold of passenger planes. Due to the war in the region, flights in most Gulf countries are still severely restricted, and the land route is too risky and crosses many borders. For this reason sellers, wanting to avoid paying the high costs of storing gold in bank vaults, decided to offer discounts of up to $30. per ounce compared to the London reference price. As “India Times” reminds, spot gold prices have increased by almost 20 percent this year. and remain above 5,000. hole. per ounce.
This country was most affected by the disruption of gold supplies
One of the largest recipients of gold from Dubai is India, and this is the country most affected by supply disruptions. — Several shipments were delayed or stuck at airports, which actually led to a reduction in the availability of bullion in India, admitted Renisha Chainani from Augmont Enterprises, a company that is one of the largest gold dealers in India, in an interview with the India Times on Saturday.
See also: The price of gold fell the most in a month. Investors choose another “safe haven”
— For now, there are significant supplies, but if the war drags on for several months, then there will be a problem Chirag Sheth from a London-based consulting company dealing with precious metals market research told Bloomberg.
