DGCX Recorded Massive Upsurge in Gold Futures Trade Volumes

SEATTLE (Scrap Monster): The Dubai Gold & Commodities Exchange (DGCX) reported huge surge in trading on Gold Futures product during the month of June this year. The tremendous surge in trading was mainly on account of investors’ increased flocking to safe-haven assets due to rising geopolitical tensions.

The average daily volume (ADV) recorded massive growth of 507.4% month-on-month and 225.5% year-on-year. The month-on-month Average Open Interest (AOI) recorded an upsurge of 90.7%. The exchange traded over 1.73 million contracts in June this year. The currency portfolio witnessed robust trading action, boosted by increased trading in its Indian Rupee (INR) product suite. The INR Mini Futures quarterly AOI recorded its highest level in Apr-June ’19 quarter, with trade totaling 114,817 contracts. The Euro futures too recorded its highest quarterly AOI, with total traded contracts amounting to 3,582.

ALSO READ: DGCX Spot Gold Contract Receives New Shari'ah Certification

Commenting on the performance, Les Male, CEO, DGCX commented that the fresh speculation over lower Fed Reserve rates, ongoing weakness in U.S. dollar and rising geopolitical tensions between the U.S. and Iran resulted in worldwide investors flocking to gold as their preferred safe-haven asset.

DGCX has made significant investments to build its product portfolio and strengthen its current contracts. Furthermore, it aims to introduce new regional products in response to member demand, which in turn will help it to enter the second half of the year on a positive note.