Dubai gold hub affected by flight cancellations due to strikes on Iran

Physical gold flows to and from Dubai’s bullion trading hub will be severely curbed in coming days as airlines cancel flights due to U.S. and Israeli strikes on Iran and Tehran’s retaliation.

Dubai’s trading hub is a major gold supplier to Switzerland, Hong Kong and India, a major consumer. Gold travels by plane due to security and insurance issues stemming from its value-to-weight ratio. The impact on the global supply will depend on the length of disruption.

Spot gold prices closed on Friday up 1.7% at $5,277 per troy ounce, their highest since January 30, with many analysts expecting safe-haven inflows into bullion once the market opens on Monday. Gold’s record high was $5,594.82 on January 29.