Gold prices in Dubai are trading at a notable discount compared with the London market as tensions from the war involving the US and Iran disrupt travel across the Middle East and weigh on bullion demand.
The conflict has affected passenger flight routes to the United Arab Emirates (UAE), particularly Dubai, while uncertainty over the duration of the crisis has kept investors cautious.
Dubai is one of the world's key physical gold trading hubs, supplying markets including Switzerland, Hong Kong and India, according to a Reuters report.
However, the US–Israeli war involving Iran has led to widespread flight cancellations across the region. This has increased the availability of gold locally even as demand remains subdued.
"The market remains at a discount, but in thin trade the variation is wide, ranging from about $10 to $30 per troy ounce,” a Dubai-based bullion dealer told Reuters on Monday.
Also Read: Bitcoin Rises Amid Signs Of A Potential End To The Iran War
Demand has softened both in India — one of the world's largest consumers of gold — and across the Middle East, the dealer added. Volatile prices have also prompted many buyers to postpone purchases. Globally, gold prices have stayed relatively muted despite the geopolitical tensions. Investors are assessing the potential inflationary impact of the conflict, while a strong US dollar has also weighed on bullion. Since the start of the US–Iran war, spot gold prices in the US have slipped nearly 2%.
New baggage rules for travellers
As Dubai's lower gold prices attract attention, travellers to India may benefit from changes in baggage rules introduced by the government. Under the New Baggage Rules 2026, the earlier value limit on jewellery carried by travellers has been scrapped, although the weight limit remains unchanged.
The revised rules came into effect on Feb. 2, following their announcement in the Union Budget 2026. The changes could benefit Indian travellers returning from global gold hubs such as Dubai, where bullion prices are often cheaper than in India.
Also Read: Air Raid Sirens Sound At Dubai Airport Amid Missile Threat, Passengers Directed To Bomb Shelters
How much duty-free gold can you bring?
According to a release issued by the Press Information Bureau (PIB), the exemption for jewellery is now determined solely by weight, with the earlier cap on value removed.
Eligible returning residents and tourists of Indian origin who have stayed abroad for more than one year can bring gold jewellery duty-free within the specified weight limits. The exemption applies only to gold jewellery, not to gold bars or coins.
The limits are:
- Women: Up to 40 grams of gold jewellery
- Others: Up to 20 grams of gold jewellery
Previously, travellers had to comply with both weight and value limits. The government removed the value cap amid the sharp rise in gold prices over the past two years.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.