DUBAI, The Dubai Gold & Commodities Exchange (DGCX) today announced that it has launched a 12.5kg physically delivered Daily Gold Futures Contract, available for trading today.
As the first-of-its-kind in the region, the contract builds on DGCX’s growing suite of precious metal products. The Daily Gold Futures Contract was introduced in response to increased market demand and will be cleared by the Dubai Commodities Clearing Corporation (DCCC).
The Daily Gold Futures Contract is certified in accordance to Dubai Good Delivery (DGD) standards which are regarded as the international benchmark for quality and technical specifications for production of Gold and Silver .
The Daily Gold Futures Contract size is 400 troy ounces, with a weight tolerance of 350 troy ounces. Initial brands will include Emirates Gold DMCC and Al Etihad Gold Refinery DMCC, with the possibility of additional brands being added in the future. The contract will be compulsory physical delivery for all open positions held at the end of each trading day, with delivery taking place at approved vaults.
Les Male, CEO of DGCX, said, “Our launch of the Daily Gold Futures Contract comes at a time during which investors desire a greater exposure to gold. This was particularly evident in the wake of the ongoing pandemic, as investors turned to safe-haven investments during a period that proved to be turbulent for economies around the globe. In this environment, we believe this is an optimal time to begin our Daily Gold Futures Contract and offer a broader range of solutions to meet member’s business needs.”
Gold and more broadly, precious metals of various kinds saw particularly large volumes of trading activity at the DGCX last year. In August 2020 alone, DGCX saw its flagship Gold Futures Contract record year-to-date (YTD) volume growth of 47.64% compared to the same period last year, whilst its Silver Futures Contract recorded year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 281.77%.
Source: Emirates News Agency