Provides access to liquidity sources

“Dubai Gold and Commodities” unveils new futures and spot contracts for physical gold

New contracts can be widely used to hedge the gold markets.

From the source

Yesterday, the Dubai Gold and Commodities Exchange revealed new futures and spot contracts for physical gold.

The exchange clarified in a statement that it has launched two new products for traders and financial institutions that provide the ability to use physical gold as collateral to access affordable, short-term lending sources backed by the guarantee provided by the exchange’s clearing house as a central third party.

She added that the two new products could be used to hedge the gold markets.

And she indicated that the two products are designed so that they can be used together by traders, such as a repurchase agreement, to obtain short-term liquidity from banks, through the immediate physical gold contract, while the physical gold futures contracts are traded at the same time so that the trader gets his gold, and the bank gets on his money.

Ahmed bin Sulayem, CEO of the Dubai Gold and Commodities Exchange, said, "Dubai's position has strengthened as a strong asset class globally over the past year, as banks have begun to increasingly accept it as collateral from traders and institutions seeking liquidity."

He added, "The UAE is an important regional financial center, and commodities, especially gold, are among the important assets that contribute to stimulating trading volumes in the markets."

He explained that «the stock exchange aims, through the launch of new contracts, to provide broader options for participants in the commodity market».

Follow our latest local and sports news and the latest political and economic developments via Google news