How the Gold Rate in the UAE Is Calculated
Gold prices change many times a day, and the number you see in Dubai differs from the one in Riyadh or Kuwait. All of them come from a single source — the global price of gold per ounce in US dollars — converted by weight, currency and karat. Here is the full method.
Step 1: the global ounce price
Gold trades almost around the clock on weekdays and is quoted in US dollars per troy ounce. A troy ounce is 31.1035 grams — heavier than the everyday ounce used for food.
Step 2: from ounce to gram
Divide the ounce price by 31.1035. With gold at 4,000 USD per ounce, a gram of pure gold costs 4,000 ÷ 31.1035 ≈ 128.60 USD.
Step 3: convert to local currency
Multiply the dollar gram price by the exchange rate. The UAE dirham is pegged at 3.6725 per dollar, so 24K costs 128.60 × 3.6725 ≈ 472.29 AED per gram. In Saudi Arabia you multiply by 3.75 and in Qatar by 3.64. The Kuwaiti dinar is linked to a basket of currencies, so its conversion factor moves a little every day.
Step 4: apply the karat purity
| Karat | Factor | Example (AED) |
|---|---|---|
| 24K | 1.000 | 472.29 |
| 22K | 0.9167 | 432.93 |
| 21K | 0.875 | 413.25 |
| 18K | 0.75 | 354.22 |
| 14K | 0.5833 | 275.50 |
These numbers are illustrative; live prices updated every minute are on our home page.
Why the shop price is higher
The formula gives the raw gold price. For finished jewellery the shop adds:
- A making charge, which depends on design and craftsmanship.
- The dealer's margin.
- VAT where it applies — 5% on jewellery in the UAE, and 15% in Saudi Arabia on gold below 99% purity.
Other units
A tola is 11.6638 grams and a kilo is 1,000 grams, so the tola price is simply the gram price × 11.6638 — calculated automatically in our tables.
In short
Gram price = (ounce price ÷ 31.1035) × exchange rate × karat purity. With this formula you can check any price you are offered and see exactly how much has been added on top.
