DGCX to Launch Spot Gold Contract

Dubai: Dubai Gold and Commodities Exchange (DGCX), a financial and commodity derivatives exchange is getting ready to launch a spot gold contract and a number of commodities, equity and currency derivative contracts between now and the end of the year, said Gary Anderson, CEO of DGCX in an interview with Gulf News.

The exchange primarily focused on derivatives is all set to launch a spot gold contract this year that is expected to make Dubai a major price discovery centre for the precious metal.

“We are working on the spot gold contract’s specifications and timing of the launch. We expect to launch it next 2 to 3 months. The reason for the spot gold is to create a contract that is very much regionally and Dubai relevant asset class,” said Anderson.

Now up to 40 per cent of the gold traded in the world comes through Dubai. The city has a robust gold eco-system that constitutes of importers refiners and exporters, an active gold trading market and a derivatives market. One thing that is missing in this market is the physical spot gold trading and benchmarking. The product is expected to create arbitrage opportunities for multi-market participants as DGCX’s dynamic price quotes will be available on its screen throughout the trading session.