DGCX Sees Gold Futures Trading Surge as Investors Flock to Safe-Haven Assets
The Dubai Gold & Commodities Exchange (DGCX) saw a surge in trading on its flagship Gold Futures product last month, as increasing geopolitical tensions across the globe drove investors towards safe-haven assets. The product recorded month-on-month (M-O-M) average daily volume growth (ADV) of 507.4%, and year-on-year ADV growth of 225.5%, while also registering M-O-M Average Open Interest (AOI) growth of 90.7%.
Les Male, CEO of DGCX, commented: “Gold reasserted its position in June as the safe-haven asset of choice, as investors worldwide flocked to the precious metal on the back of fresh speculation around lower Federal Reserve rates, a weak US dollar, and heightened geopolitical tensions between the US and Iran. This was strongly reflected on the DGCX, with our Gold Futures contract registering its best month since November 2016.”
The DGCX traded over 1.73 million contracts in June, with the Exchange’s currency portfolio also experiencing an upswing in trading, particularly its Indian Rupee (INR) product suite. INR Mini Futures registered its highest quarterly AOI with 114,817 contracts between April and June, while INR Quanto Futures, the index pricing of the Indian Rupee US dollar currency pair, registered its best month since March 2016 with a total of 578,872 contracts traded. Euro Futures was another standout performer, registering its highest quarterly AOI with 3,582 contracts, building on its strong trajectory from May as Brexit talks continue.
“We have invested significant time and energy this year on building our product portfolio and strengthening our current contracts. We are thrilled to see continued growth as an increasing number of investors recognize the value they offer for hedging purposes, particularly in periods when markets are experiencing sharp volatility,” added Male.
In light of such strong performances, the DGCX recorded its third highest quarterly AOI with 355,365 contracts over the last three months. Open Interest is defined as the number of contracts outstanding in derivatives (such as futures and options) trading at any time on a market and is a definitive measure of a product’s and wider exchange’s success.
“The next few months will be a particularly busy period for the DGCX, as we aim to introduce new regionally relevant products in response to member demand. We are confident that we will enter the second half of the year on the same positive note in which we ended the first, building on our momentum and widening investor participation,” concluded Male.
About DGCX: 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 200 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 federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 90 clearers from across the globe. For more information: www.dccc.co.ae
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