Dubai: The Dubai Gold and Commodities Exchange (DGCX) saw a spike in trading of its precious metals portfolio in August, as investors and market participants turned towards safe-haven assets amidst continuing global economic uncertainty and a weakening US dollar. Last month, the DGCX saw its flagship Gold Futures product record year-to-date (YTD) volume growth of 47.64% compared to the same period last year, whilst its Silver Futures product recorded year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 281.77%.
Les Male, CEO of DGCX, said: “This year, precious metals have asserted their status as safe-haven assets. Gold in particular has been in the headlines recently, gaining 17% in value in the first half the year, and last month settling above $2,000 an ounce for the first time ever. This was strongly reflected on the DGCX, with both our Gold and Silver Futures Contracts experiencing a surge in trading.”
Momentum in the DGCX’s G6 currencies portfolio also continued to build in August against a backdrop of ongoing foreign exchange (FX) volatility. The portfolio recorded Y-O-Y volume growth of 277.8%, and has now recorded Y-T-D volume growth of 414.66% compared to the same period last year. British Pound, Euro and Yen Futures Contracts were the most prominent performers, recording Y-O-Y ADV growth of 944.5%, 55.51% and 1387.25% respectively.
Total volumes on the DGCX in August totaled 872,918 contracts, valued at USD 21.45 billion. The DGCX last month also registered Average Open Interest (AOI) of 136,345 contracts.
Male added, “Our recently launched Weekly INR Futures Contract and FX Rolling Futures Contracts have also been gaining traction this month. They are still in the early stages, but they have received a great response so far, as we aim to widen investor participation and increase our member base both locally and globally. We are confident that they will see significant growth in trading activity over the next few months.”
Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 138 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is regulated by the Securities & Commodities Authority (SCA). It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA) with over 50 clearers from across the globe. For more information: www.dccc.co.ae
For further information, please contact:
Weber Shandwick PR
Tel: +971 (0) 4 445 4222
© Press Release 2020