It starts with the world price
Gold is traded around the clock in London, New York and Asia, quoted in US dollars per troy ounce. That world price moves every second while markets are open.
Then it is converted to dirhams and grams
- The dirham is pegged to the US dollar at 3.6725, so the conversion is fixed.
- One troy ounce is 31.1035 grams.
- So: world price in dollars per ounce, times 3.6725, divided by 31.1035, gives the price in dirhams per gram.
Then the seller adds a margin
No one sells at the exact world price. Every seller adds a spread: you buy a little above it and sell a little below it. That gap is how the seller earns. Lumos's spread on gold is about 1.5% each way, built into the price, and today's buy price is AED 496.26 per gram.
Why jewellers quote different prices
Shops in Dubai often display a daily board rate for 24K, 22K, 21K and 18K, set by the trade each morning and updated during the day. On top of that, jewellery has making charges and 5% VAT, so the final price of a necklace is well above the board rate times its weight.
When is gold cheapest?
No one can predict the price. What you can control is your cost: a low spread, no making charge, and buying regularly so you are not betting everything on one day's price.
Questions
What is the gold rate in Dubai today?
Lumos is selling 24K gold at AED 496.26 per gram right now and buying it back at AED 481.58. See 22K, 21K and 18K on our live prices page.
Why is the sell price lower than the buy price?
The gap is the spread, which is how a gold seller earns. Compare spreads when you choose where to buy, because it is your real cost.
Is gold cheaper in Dubai than elsewhere?
The gold itself costs about the same everywhere, because it follows one world price. Dubai is known for low making charges, no VAT on investment gold and a wide choice of sellers.
General information, not financial advice. Prices change all the time; Lumos prices shown are live.