Global gold logistics suffer a major impact with 20% of gold flow disrupted.

The report by the Financial Times on the 4th pointed out that the situation in the Middle East has led to a near halt in local air cargo transportation, which could further exacerbate the already turbulent prices of precious metals. The Financial Times reported that Dubai in the United Arab Emirates is a major hub for global precious metal transport, accounting for about 20% of the world's gold flow. Customs data shows that by 2024, Dubai's gold exports ranked second globally, only behind Switzerland. This includes gold bars mined in Africa and refined in the UAE, as well as gold shipped from Europe via Dubai to Asia. India is the largest export destination for Dubai's gold, and analysts at the World Gold Council point out that the domestic gold price in India has quickly responded. Last Friday, the Indian gold price was about $50 cheaper per ounce compared to the London gold price, but by Monday, the prices in the two locations had more or less equalized. The report pointed out that the transportation of precious metals depends on air cargo, and since the US launched attacks on Iran, most commercial flights in the Gulf region have been grounded. On the 4th, only a few passenger planes took off from Dubai, but insiders revealed that these flights did not carry gold cargo. Market analysts warn that if the transportation of gold and silver is blocked for a long time, it could push up regional prices in the Asian precious metals market, significantly increasing the volatility of gold and silver prices.