New Delhi, March 10 -- Gold prices in Dubai are trading at a steep discount to the London market as the Middle East is rocked by the war between the US and Iran, which has disrupted not only flight routes to this major city in the United Arab Emirates (UAE) but also dampened demand for the bullion as investors remain uncertain about how long the crisis could last.

Dubai is a major trading hub for physical gold, supplying to Switzerland, Hong Kong and India, according to a Reuters report.

However, the US-Israeli war on Iran has triggered widespread passenger flight cancellations across the Middle East, increasing the availability of gold in the region while demand remains weak.

"The market remains at a discount, but in thin trade the va...