The spot price is the current wholesale price of gold or silver for immediate delivery, quoted per troy ounce in US dollars. In the UAE it converts to dirhams at the fixed peg of AED 3.6725 per dollar.
Where the spot price comes from
There is no single shop that sets the spot price. It is the price at which large banks and traders swap metal in the global over-the-counter market, centred on London, alongside futures trading in New York and Shanghai. Prices move every second while those markets are open.
Twice a day, the LBMA Gold Price auction produces a benchmark that many contracts use. The live spot price is what quotes in between.
Converting spot into dirhams
Spot is quoted in US dollars per troy ounce. The UAE dirham is pegged to the dollar by the Central Bank of the UAE at AED 3.6725 per USD. That makes the conversion more stable than in most countries: movements in the AED price come almost entirely from the gold price itself, not from currency swings.
The formula:
- Per ounce in AED: USD spot × 3.6725.
- Per gram in AED: AED per ounce ÷ 31.1035.
- Per tola in AED: AED per gram × 11.6638.
Example with a round number for illustration: if spot were USD 3,000 per ounce, that would be AED 11,017.50 per ounce, AED 354.22 per gram and AED 4,131.56 per tola. Our gold price chart in AED does this conversion live.
Why you cannot buy at spot
Spot is a wholesale price for large bars traded between professionals. A retail buyer in Dubai pays more for several reasons:
- Fabrication: turning a 400 oz bar into coins or small bars costs money.
- Dealer margin: rent, staff, insurance and profit.
- Size: a 1 g bar carries a much higher cost per gram than a kilobar.
- VAT: 5% on gold below 99% purity and on jewellery.
- Delivery: shipping and insurance for online orders.
The gap between spot and what you pay is the premium over spot. It is the number worth comparing between dealers, which is why our gold coin ranking shows the final price including delivery.
Spot versus the Gold Souk board
Jewellers in Dubai publish daily per gram rates for 24K, 22K, 21K and 18K. Those boards start from spot but are retail rates set by the trade, and they do not include making charges. Use them as a guide, not as spot.
Related terms
Premium over Spot LBMA Good Delivery Troy Ounce Bid-Ask Spread
FAQ
How is the gold price in AED calculated?
Take the US dollar spot price per ounce and multiply it by 3.6725, the fixed exchange rate between the dirham and the dollar.
Why is the Dubai gold rate different from spot?
Retail rates in Dubai include dealer margins and, for jewellery grades, lower purity, so they differ from the wholesale spot price.
Can I buy gold at the spot price in the UAE?
No, retail buyers always pay a premium above spot to cover fabrication, dealer costs and delivery.