ABU DHABI (Commodity Online) : World's first Gold ATM started functioning at Abu Dhabi's Emirates Palace Hotel.

The gold to go machine, developed by Germany's TG-Gold-Super-Markt, dispenses 24 carat one gram, five gram and 10 gram pieces of gold as well as coins bearing designs such as the Krugerrand, Maple Lea and Kangaroo.

A computer in the machine, itself gold-plated, constantly keeps prices in line with the firm's online store.

Gold rates are constantly updated inside the machine in the hotel's lobby, courtesy of a built-in computer connected to a dealer which sells gold online.

This eliminates the risk premiums usually associated with precious metal trading, the German company said.

Last May the company showcased a machine at Frankfurt railway station and claimed it would install 500 of them ATMs in Germany, Switzerland and Austria.