Why gold prices have remained subdued in India despite raging West Asian conflict

Tue Mar 17 2026

Gold dealers and refiners in India are offering discounts of up to $80 per ounce as jewellery demand remains weak due to high prices, disruption to flight services and a strong dollar, even as the war continues to rage in West Asia. There are also sufficient gold reserves available in India for jewellers in the near term, and the conflict in the region is unlikely to significantly impact the Indian bullion market.

Normally gold rises during wars, because investors move money to “safe-haven” assets. However, the dollar has remained strong this time, making gold expensive for countries and reducing demand.

The United Arab Emirates has closed a lot of its transportation network after being caught in the middle of the ongoing war, with bombings occurring across Dubai, a global bullion hub. This has led to traders offering discounts of up to $30 per ounce on prices on the London Bullion Market Association (LBMA) benchmark as they are unable to export gold out of the country with flight routes in the city shut, Bloomberg had reported last week.

Source: https://indianexpress.com/