Dubai's trusted gold rate source — DGJG rates, free calculator & live market feed

Educational Guide · July 21, 2026

How Gold Price is Calculated in Dubai

The complete step-by-step formula — from international gold spot price to the per-gram AED rate displayed in the Gold Souk.

The Formula

AED/gram (24K) = (USD spot/oz ÷ 31.1034) × 3.6725 + markup
1
International Spot Price (USD/oz)$4012.14/troy oz

Determined by LBMA gold fix in London and COMEX futures in New York. Changes continuously during trading hours.

2
Convert to USD per Gram$128.9936/g

1 troy ounce = 31.1034 grams. Divide the USD/oz price by 31.1034 to get USD per gram.

3
Convert to AED per GramAED 473.73/g

Multiply USD/gram by 3.6725 (fixed AED/USD peg). This gives the wholesale 24K price in AED.

4
Add Retail Markup → DGJG RateAED 483.92/g

DGJG adds a small retail markup (typically AED 5–15/gram for 24K) and publishes the official benchmark twice daily.

5
Calculate Lower Karats22K: 443.60 · 21K: 423.43 · 18K: 362.94

Lower karats = 24K rate × (karat/24). 22K = × 0.9167, 21K = × 0.875, 18K = × 0.75.

What Else Adds to the Final Price?

3–35%
Making Charges
Labour and craftsmanship fee added to jewellery. Zero or minimal on bars and coins.
5%
VAT
Applied to jewellery purchases. Zero-rated for 24K investment gold. Refundable for tourists.
AED 0–10/g
Shop Premium
Some shops add slightly above DGJG rate. By law, receipts must itemise gold value separately.

The Role of the DGJG

The Dubai Gold & Jewellery Group (DGJG) is the official trade body established in 1989. It publishes the official gold benchmark rate twice daily — at market open (~9 AM GST) and at noon. These rates are calculated from the London Bullion Market Association (LBMA) fix, converted at the fixed AED/USD peg of 3.6725.

All licensed jewellers in Dubai are legally required to display the DGJG rate and cannot sell gold below it. Shops can charge above the benchmark (the difference is their profit margin) but must show the actual gold content and making charges separately on receipts. Buyers who believe they have been overcharged can file a complaint with the Dubai Economy & Tourism Department.

Today's Gold RateMaking ChargesVAT GuidePurity GuideDGJG Rate Explained

FAQs — Gold Price Calculation Dubai

How is gold price calculated in Dubai?

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Dubai gold price = (International spot price in USD/troy oz ÷ 31.1034) × 3.6725 + retail markup. The AED/USD rate is fixed at 3.6725 (UAE peg). The retail markup is typically AED 5–15/gram for 24K. Lower karats are calculated by multiplying the 24K rate by the karat purity (e.g., 22K = 24K rate × 22/24).

What is the DGJG and how does it set Dubai gold prices?

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The Dubai Gold & Jewellery Group (DGJG) is the official trade body that publishes benchmark gold rates twice daily for the Dubai market. Rates are calculated from the LBMA (London Bullion Market Association) gold price converted to AED at the fixed 3.6725 peg. All licensed jewellery shops in Dubai must display DGJG rates. Shops may add a retail markup but cannot advertise below the benchmark.

Why is the Dubai gold price different from the London or New York spot price?

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The Dubai DGJG rate includes a small retail markup (AED 5–15/gram for 24K) over the pure wholesale spot price. Additionally, the spot price is in USD/troy oz while Dubai quotes in AED/gram. Converting: (USD spot ÷ 31.1034) × 3.6725 gives the wholesale AED/gram. The DGJG rate adds a small buffer above this.

How is 22K gold price calculated from 24K?

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22K gold price = 24K price × (22/24) = 24K price × 0.9167. So if 24K is AED 300/gram, then 22K = 300 × 0.9167 = AED 275/gram. Similarly: 21K = 24K × 0.875, 18K = 24K × 0.75.

Who decides the international gold spot price?

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The global gold spot price is determined by the LBMA (London Bullion Market Association) gold price auction, which runs twice daily (AM and PM fix). COMEX futures in New York also influence spot prices continuously throughout the day. Major inputs are: USD strength, Federal Reserve policy, inflation data, central bank demand, ETF flows, and geopolitical events.