Flights carrying gold and silver to and from Dubai have been grounded amid the ongoing conflict in the Middle East, creating significant disruptions to global bullion flows and leading to challenges within the precious metals industry.

The United Arab Emirates (UAE) plays a crucial role in the metal market, especially in refining and exporting gold to Asian buyers and acting as a conduit for shipments from Switzerland and London, reported Bloomberg.

However, the recent wave of Iranian missile attacks prompted a partial closure of UAE airspace, halting operations at Dubai's airports and affecting shipments transported in the cargo holds of passenger planes.

Traders and logistics companies have reported indefinite pauses in their metal shipments through Dubai, with efforts focused on rerouting consignments intended for transit through the emirate.

Transporting high-value cargo overland to other regional airports poses significant risks, making it an unfeasible alternative.

Traditionally, gold is economically moved between trading hubs via passenger aircraft for less than $1/oz per trip.

However, the volume a single flight can carry is limited by value due to insurance caps on tonnage.

Consultant and veteran of the precious metals logistics industry Lars Johansson was cited by the news agency as saying that overland transportation introduces complex challenges, especially when crossing international borders.

While current disruptions are expected to be temporary, a prolonged suspension could challenge traders in India and other markets dependent on UAE-sourced metal.

Metals Focus managing director Philip Newman said that premiums for bullion in Saudi Arabia witnessed an increase on Monday, suggesting concerns about the availability of products.

The suspension of commercial flights, triggered by US and Israeli actions against Iran, has affected more than 12,300 flights globally since the strikes began, as reported by Flightradar24.