Strong growth in gold futures trading

According to the Emirates News Agency, the circulation rate increased by 773.6 per cent since the beginning of the year to date, compared to the same period last year, which was boosted by the record trading volume in January, which reached its highest rate in previous years.

This strong growth came in light of the uncertainty prevailing in the global economy and prompting investors to increasingly turn to safe assets.

The total trading volumes on the Dubai Gold and Commodities Exchange reached 1.49 million contracts during the month of February, while the open interest rate since the beginning of the year to date was 367,878 contracts compared to 243,409 contracts in the same period of 2019, an increase of 51.1 percent.

The trading of the six major currency pairs G6 on the Dubai Gold Exchange recorded a strong performance in February, as the asset class achieved a total growth in trading volume of 18.1 per cent with a total value of $ 7.2 billion and the future euro-dollar contract was the best performer in this category, registering trades of 76 Alpha and 595 contracts grew 41.1 percent on a monthly basis.

Not inclined, CEO of the Dubai Gold and Commodities Exchange said that the unexpected events during the first two months of the year led to a shock in the global markets, where investors follow a cautious approach to the global economy and are increasingly turning to investing in products that can help them manage risk and this is reflected in trading volumes. On the DGCX as a result of more investors realizing the distinct value that our products offer for hedging purposes.

He expected the exchange to witness strong activity during the remainder of the year as we prepared to launch new products specifically designed for the region with the aim of providing our members with a wide range of tools to protect their investments and enhance safety levels.

Mill added that the Dubai Gold and Commodities Exchange is also planning to launch new and innovative products in the foreign currency area subject to the approval of regulatory bodies including renewable foreign currency contracts FX Rolling, which are permanent foreign currency contracts that include three currency pairs are expected to be particularly beneficial to investors. Founders of the Dubai Gold and Commodities Exchange.

He pointed out that the Indian rupee products portfolio on the DGCX had also contributed to boosting trading volumes during the past month.

The best performing of these contracts was the Indian rupee futures contract, which represents the price index of the Indian Rupee currency pair / US dollar, recording 113,521 contracts, an increase of 43 per cent on a monthly basis and 9.6 per cent on an annual basis.