DGCX Mini-Gold Futures Target Small-Scale Gold Investors

SEATTLE (Scrap Monster): In response to constant feedbacks from market participants, the Dubai Gold & Commodities Exchange (DGCX) has announced its plans to launch Mini-Gold Futures, in partnership with RAKBANK. The contract is expected to be launched in Q3 this year, subject to necessary regulatory approvals.

The contract will be the first-of-its-kind in the region and will provide investors with an opportunity to trade gold in smaller quantities. The launch of the new contract is expected to boost the exposure of smaller investors in precious metals market.

The Mini-Gold Futures contract will be launched on the Exchange platform and will be cleared by the Dubai Commodities Clearing Corporation (DCCC). In the beginning, delivery will be through electronic transfer at RAKBANK. The Exchange plans to add physical redemption capabilities in near future.

Les Male, CEO of DGCX noted that the exchange is pleased to expand its precious metals product portfolio by launching MENA’s first exchange-listed Mini-Gold product, as a result of its ongoing strong partnership with RAKBANK which started in 2017. Currently, the large size of existing gold contracts makes it difficult for small investors to own gold in the UAE. The move by the Exchange will open up access for them, he added.

Meantime, Vikas Suri, Managing Director of Treasury at RAKBANK said that the launch of the new product is part of its RAKGOLD project aimed at delivering the UAE’s first full-service, end-to-end bullion banking solution.