Gold prices in Dubai are currently trading at $30 an ounce discount to the London benchmark prices due to weak demand after the raging Iran war in the West Asian countries crippled flight services.
Tourists and bullion dealers from India and China are the major buyers of gold from Dubai. Tourist arrivals have come to a standstill with the cancellation of flights from both the countries.
Supply chain pressure
Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council, said traders in Dubai are selling gold at about $30 per ounce below the London benchmark price, largely due to disruptions in shipments caused by the ongoing West Asia conflict.
It is important for Indian jewellers and consumers to understand that gold prices globally remain high, and no country can afford to slash prices without destabilising the market, he said.
The current discount reflects supply chain pressures rather than a fundamental change in value, he said.
Prithviraj Kothari, President, India Bullion and Jewellers Association, said gold trading at a discount in Dubai reflects temporary logistical disruptions rather than a structural change in demand.
Buyers turn cautious
Flight cancellations across West Asia have slowed the movement of bullion, leaving excess supply in the local market and pushing prices to a $25–30 per ounce discount to London, he said.
At the same time, elevated price volatility and uncertainty around the duration of the conflict have kept buyers cautious, leading to weaker physical demand in key markets such as India and the Gulf, he added.
If transport routes normalise, these discounts are likely to narrow quickly as Dubai resumes its role as a key distribution hub for bullion flows to Asia and Europe, said Kothari.
Meanwhile, gold prices in India was up marginally at ₹160,303 per 10 grams against ₹160,230 on Thursday as rupee depreciated against dollar, according to the Indian Bullion and Jewellers Association of India data. In the global market, gold declined by about $60 an ounce to $5,118 on Thursday. April futures on COMEX slid to $5,123.14. On MCX, April gold futures quoted at ₹1,60,892 per 10 gm.
Published on March 12, 2026
