Gold buyers in Dubai are suddenly finding rare bargains.

One of the world’s busiest bullion trading hubs is experiencing a temporary supply bottleneck as the ongoing U.S.-Israel conflict with Iran is forcing airspace closures and flight disruptions across the region.

For traders stuck with gold that cannot easily leave the city, discounts have become the fastest way to move inventory.

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As the conflict in the Middle East disrupts air travel and strands bullion shipments, traders in the region’s key gold hub are offering steep discounts of up to $30 per ounce below the global benchmark price in London, Bloomberg reported.

Dubai plays a crucial role in the global gold supply chain.

The United Arab Emirates serves as a refining and export hub for bullion moving between Switzerland, the United Kingdom, and several African producers before being shipped to major consumer markets across Asia.

But the latest escalation in the Middle East has complicated logistics.

Iranian missile attacks and the widening regional conflict have partially closed UAE airspace, severely limiting passenger flights, which is the primary method used to transport gold internationally.

Gold is typically shipped in the cargo holds of commercial aircraft. With flights grounded or reduced, traders now face higher insurance and shipping costs, as well as uncertain delivery timelines.

As a result, many buyers are postponing new orders.

Renisha Chainani, head of research at Augmont Enterprises Ltd., one of India’s largest gold dealers, said,

“Several cargo shipments have been delayed or stranded, leading to short-term tightness in the availability of physical bullion in India."

Traders holding bullion in Dubai warehouses are now reportedly offering discounts of up to $30 an ounce rather than paying ongoing storage and financing costs while waiting for flights to resume.

While some shipments have begun leaving Dubai since midweek, many cargo loads remain stuck.

Ahmed Al-Marri, a Dubai-based gold jeweller operating near the city’s historic Gold Souq, said the unusual discounts are already visible at the retail and wholesale level as traders try to move inventory that cannot easily leave the country.

“The supply is here, but the problem right now is logistics,” Al-Marri said. “When flights slow down or airspace gets restricted, shipments to India and other Asian markets get delayed. Traders holding large quantities prefer to sell locally at a discount rather than wait and pay storage and financing costs.”

He added that buyers in Dubai are taking advantage of the temporary price gap between local offers and global benchmark prices.

“Normally Dubai trades very close to the international price, but in the past few days we’ve seen sellers offering noticeable discounts just to keep inventory moving,” Al-Marri said. “For local buyers and jewellery retailers, it’s actually a rare opportunity to pick up gold cheaper than usual.”

TheStreet Roundtable reached out to the Dubai Multi Commodities Centre (DMCC) for a comment and had not received a response by the time of publication.

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Periods of geopolitical turmoil often reignite the long-running debate between gold and Bitcoin as safe-haven assets.

Gold has historically served as a refuge, a safe haven, during crises, thanks to its scarcity, long history, and global acceptance as a store of value.

Bitcoin (BTC), often called “digital gold,” offers a different form of scarcity through its fixed supply of 21 million coins. Supporters argue that this makes it resistant to currency debasement and central bank monetary expansion.

But critics point to Bitcoin’s higher volatility compared with the precious metal.

However, the recent market moves have broken the concept of "safe haven" altogether.

During the latest U.S.-Iran tensions, gold initially surged to around $5,400 before pulling back toward $5,000. Bitcoin, meanwhile, briefly dropped near $63,000 before rebounding above $70,000.

At press time, Bitcoin was trading around $71,074, up roughly 3.2% in the past 24 hours. Gold was trading around $5,232.55 per ounce, up 2.68% on the day.

As of March 10, in Dubai’s retail market, prices recently hovered around 628 UAE dirhams (approx. $170) per gram for 24-carat gold and 478 dirhams (approx. $130) for 18-carat, Gulf News reported.

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This story was originally published by TheStreet on Mar 10, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.