Published onMarch 4, 2026
By Sharecafe Team
Airspace closure grounds bullion, raising concerns about supply chain vulnerabilities
The mass cancellation of flights to and from Dubai, a key bullion hub, has disrupted the movement of gold, revealing potential vulnerabilities in physical gold flows due to Middle East tensions. The United Arab Emirates (UAE) is a crucial player in the global gold market, refining and exporting bullion to Asian buyers, and facilitating shipments from Switzerland and London.
Over the weekend, an unprecedented wave of Iranian missile fire prompted the UAE to partially close its airspace and halt flights in Dubai. This action grounded shipments of gold and silver transported in passenger aircraft cargo holds. Trading and logistics firms have reported an indefinite pause to their metal shipments to and from Dubai. Monday was spent rerouting consignments scheduled to pass through the Emirate en route to their final destinations.
Shipping bullion by road to alternative airports in the region is often impractical due to the high risk associated with overland transport of such valuable cargo. Insurers limit the volume of gold carried on a single flight, not by weight, but by value, typically underwriting only a few tonnes per plane. Gold is efficiently moved between trading hubs in the cargo holds of passenger aircraft for under $US1 an ounce per trip.
The disruption highlights the sensitivity of the gold supply chain to geopolitical events and airspace closures. Any prolonged delays could impact the availability of gold and potentially influence market prices.
Source: Sharecafe
