Dubai's DGCX sees strong demand for silver amid volatility

Silver futures contracts post year-to-date volume growth of over 300%

  
One ounce silver coins undergo washing at the cleaning facility at the United States West Point Mint facility in West Point, New York June 5, 2013.

One ounce silver coins undergo washing at the cleaning facility at the United States West Point Mint facility in West Point, New York June 5, 2013.

REUTERS/Shannon Stapleton

Investor interest in silver has spiked in recent weeks amid market volatility, the latest data from Dubai Gold and Commodities Exchange (DGCX) showed.

In its latest report, the DGCX said that trading in silver futures contracts surged in February, recording a year-to-date volume growth of 348.35 percent compared to the same period last year.

“During this month, the strong interest in the precious metal follows global trends as well as market volatility which saw silver jump to an eight year high earlier in the month,” DGCX said in a statement.

Analysts have said that demand for silver is set to rise as investors continue to look for safe-haven assets to protect their fortunes. Last month, global demand for the metal was predicted to grow to an eight-year high to 1.025 billion ounces in 2021.

The DGCX also reported that it has recorded the third-highest average open interest (AOI) in its Euro (EUR) FX rolling futures contracts since its launch, with 1,623 contracts.

Its Indian rupee (INR) FX future contracts trading also registered a remarkable increase last month, and this was due to market volatility that saw the rupee post its biggest drop in 11 months.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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