Global flows of gold and silver are suffering major disruption as war in the Middle East halts most air traffic into and out of Dubai, in a move that traders say could trigger further volatility in prices that have already suffered sharp swings this year.
Dubai is a leading hub for the shipment of bullion, accounting for around 20 per cent of global gold flows last year. That includes both bullion mined in Africa and then refined in the United Arab Emirates, as well as flows from Europe to Asia that transit there.
Traders and analysts say that if gold and silver cargoes are disrupted for a lengthy period, then this could push up regional prices in Asian markets and increase volatility for metals that have sold off sharply recently after historic bull markets.