Dubai Gold and Commodities: the first of its kind in the region
The launch of a contract allowing for the daily circulation of 12.5 kilograms of gold bars
The Dubai Gold and Commodities Exchange (DGCX) announced yesterday the launch of a daily gold futures contract, which allows trading 12.5 kilograms of gold bullion daily.
The Stock Exchange stated, in a statement yesterday, that this contract is the first of its kind in the region, and is based on the Dubai Gold and Commodities portfolio growing from precious metals products, pointing out that the launch of this contract came in response to increasing market demand, and will be settled through the Dubai Clearing Company Goods ».
Dubai Standard
According to the statement, the daily gold futures contract was approved in accordance with the Dubai Standard for the Delivery of Goods, which is the region's standard of quality in the production of gold and silver bars and technical specifications, as it has the specifications of a gold bar with a weight of 400 troy ounces, and not less than 350 troy ounces.
The primary brands include: Emirates Gold Company and Etihad Gold Refinery, which are accredited by the Dubai Multi Commodities Center, with the possibility of adding other brands in the future.
The contract stipulates an actual mandatory delivery of gold for all open contracts concluded at the end of daily trading, provided that delivery takes place in certified vaults.
Trade gold
The CEO of the Dubai Gold and Commodities Exchange, not a mile, said that the launch of the daily gold futures contract comes at a time when investors want to go to gold trading more.
He added: “This was particularly evident in the wake of the continuing spread of the Corona pandemic, as investor attention turned to safe investments during the period in which economic turmoil spread around the world.
In this climate, we believe that this is the most appropriate time to launch this contract, and to provide a wider range of solutions to meet the business needs of our members. ”
Wide circulation of gold
Gold, and other precious metals of all kinds, witnessed extensive trading activity on the DGCX last year.
In August 2020 alone, the DGCX witnessed a record growth in the trading volume of the gold futures contract by 47.64% since the beginning of the year compared to the same period last year, while the silver futures contract recorded a growth in the average daily trading volume by 281.77% on an annual basis.
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