(Khaleej Times) – Gold futures trade volumes increased to $75 billion at Dubai Gold & Commodities Exchange (DGCX) in 2013, in time with DGCX plans to introduce spot gold contract in June 2014.
Dubai Gold and Commodities Exchange (DGCX) was first established to be an international trading hub for gold trading. It grew steadily despite global demand declining since it started trading in November 2005 till today. Now it accounts for 40% of the world’s physical gold trade in 2013.
In 2013, annual trade volume increased 73% to reach 2,250 metric tonnes of gold. The value of gold traded through Dubai increased to $75 billion from $70 billion in 2012. United Arab Emirates has become a global destination for gold and precious metals trading.
This announcement comes in time with DGCX plans to introduce spot gold contracts trading in June 2014. According to DGCX spokesman, the contract specifications are in its final stages. The new DGCX spot contract is expected to be for 32 troy ounces (1 kilogram) of .995 purity gold according to Dubai Good Delivery Standards, the same the future contract specification. However, more is to be revealed when an official statement published.
Dubai has definitely grew into a major bullion center and a trading hub for gold and precious metals. Dubai’s strong infrastructure and legal framework makes it an ideal environment to do business. DGCX spot gold contracts might help adding fresh cash inflows to the region and the gold market.