Volumes on the Dubai Gold and Commodities Exchange have surged 56 per cent year on year on the back of strong growth precious metal contracts.
Boom year for Dubai Gold and Commodities Exchange
Volumes on the Dubai Gold and Commodities Exchange (DGCX) have surged 56 per cent year on year on the back of strong growth in precious metal contract trades.
The exchange yesterday reported traded volumes for the 10 months to the end of last month reached 12.17 million contracts, up from 7.78 million in the same period last year.
Gold futures trading surged 60 per cent during October, with 45,928 contracts being traded. Silver futures rose 88 per cent to hit a new monthly high of 2,882 contracts traded.
Precious metals and gold in particular are central to the exchange’s expansion plans, with a spot gold contract to be launched imminently, according to Gary Anderson, DGCX’s chief executive.
“With almost a quarter of all physical gold traded globally passing through Dubai, we believe there is a very strong market for a spot gold contract,” he said.
“Such a contract will not only help merchants enhance price risk management and profitability, it will also enhance liquidity in the gold market by removing the need for offshore credit and collateral for gold trading.”
The exchange also reported a 63 per cent growth in currency trading in the year to the end of October, with Indian rupee futures increasing in popularity – up 50 per cent in year-to-date trading. They recorded 10.44 million contracts for the year to the end of October.
DGCX Indian rupee futures accounted for 33.69 per cent of the total rupees future market in October, making it the largest exchange offering offshore trading in the contract.