The Price of Gold in Dubai
UAE Often Sparks Discussion, with Common Questions Being:
- Who decides the gold price in the UAE?
- Why does the Dubai gold price differ from the LBMA London Fix?
Dubai, known as the City of Gold, is a major center for buying and selling precious metals like bullion and jewelry, both in retail and wholesale markets. The retail market is especially vibrant, featuring many dealers and shops, notably in places like the Gold Souk.
The Government of Dubai’s Department of Economic Development plays a crucial role in regulating this bustling market. They establish an ‘official’ gold price to bring stability to transactions in the Dubai gold market. This system enhances transparency by publicly displaying the Dubai Gold Rate on screens at key gold trading locations.
When it comes to jewelry, the retail price is calculated by adding the Dubai Gold Rate specific to the item’s weight to a manufacturing fee. While the gold rate is fixed, dealers can negotiate the manufacturing charge, fostering competition among them.
The Gold Rate in the UAE is decided by the Government of Dubai based on market conditions. Their goal is to make sure the precious metals market is clear and trustworthy. The Dubai Gold Rate might not match the LBMA Fix because they operate in different markets and time zones.
