The gold spot price is the current market price of gold for immediate settlement. It is usually quoted per troy ounce but can also be calculated per gram.

In simple terms, the gold spot price represents:

• The pure value of raw gold
• A global reference price used across markets
• A price that updates continuously based on trading activity

This price is universal, meaning the gold spot price in Dubai closely tracks international markets. However, the spot price applies to unrefined or bulk gold, not finished physical products like gold bars.

2. How Gold Spot Price Is Determined

A common question among buyers is how the gold spot price is determined.

The gold spot price is shaped by real-time activity in global commodities markets and is influenced by:

• International supply and demand for gold
• Trading on exchanges such as the LBMA and COMEX
• Movements in the US dollar
• Inflation, interest rates, and central bank policies
• Geopolitical uncertainty and safe-haven demand

In addition to these global benchmarks, Dubai’s position as the “City of Gold” also plays a role in how spot prices are reflected locally. Dubai’s highly active physical gold trade, transparent pricing environment, and close alignment with international markets make it a key reference point for spot pricing in the regional market.

Because gold is traded worldwide and Dubai closely tracks these global benchmarks, the gold spot price fluctuates throughout the day, reflecting changing market conditions rather than local pricing decisions.

Once you understand the spot price, the next piece of the puzzle is what the gold premium is.

The gold premium is the additional amount charged above the gold spot price when you buy a physical gold bar. This premium exists because turning raw gold into a certified, tradable gold bar involves real costs.

Gold premium typically covers:

• Refining and minting
• Secure packaging and certification
• Transportation and insurance
• Operational and dealer costs