Gold Futures Trading on DGCX Spikes Amidst Uncertain Global Economic Backdrop
The Dubai Gold & Commodities Exchange (DGCX) last month saw its flagship Gold Futures product continue its strong start to the year, with year-to-date (Y-T-D) volume growth of 773.6% compared to the same period last year, aided by a multi-year record in January. The spike in trading is a response to a global backdrop of economic uncertainty, with investors increasingly looking towards safe-haven assets. Total volumes on the DGCX in February hit 1.49 million contracts, while Y-T-D Average Open Interest (AOI) was 367,878 contracts, up from 243,409 a growth of 51.1% during the same period in 2019.
Trading across the DGCX’s G6 currency pairs was also strong in February, with the asset class recording overall volume growth of 18.1% in February, with an underlying value of USD 7.2 billion. The EURUSD Futures contract was the most prominent, trading 76,595 contracts, up 41.1% month-on-month (M-O-M).
Les Male, CEO of DGCX, commented: “Unforeseen events during the first two months of this year have sent shockwaves across global markets. Investors are bearish on the global economy and increasingly turning to products that can help them manage their risk. This is reflected in the trading we are seeing on the DGCX, in which a greater number of investors are recognizing the value our products offer for hedging purposes. The rest of the year promises to be particularly busy for us, as we prepare to launch new locally relevant products to provide our members with a wider range of tools to safely protect their investments.”
Subject to regulatory approval, the DGCX also has plans to launch new and innovative FX products, including the launch of FX Rolling contracts – perpetual rolling FX contracts for three currency pairs, which are expected to be particularly beneficial to the DGCX’s institutional investors.
The DGCX’s INR product portfolio was another driver of trading last month, on the back of President Donald Trump’s visit to India. INR Mini Futures was the standout performer, trading 113,521 contracts, up 43% M-O-M and 9.6% Y-O-Y.
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 175 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). 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 60 clearers from across the globe. For more information: www.dccc.co.ae
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