The Dubai Gold & Commodities Exchange (DGCX) has witnessed an uptick in trading volumes for the month ending April 2018, driven by increased investor interest in gold products and sterling futures, per a company statement.
Meanwhile, the exchange’s aggregate trading volume grew by double digits compared to the same period last year, crossing over 7.8 million contracts, up 35 percent from last year.
As market participants digested the implications of geopolitical tensions in key markets, which led investors to increasingly turn to gold derivatives to hedge and mitigate the impact of volatility, the monthly turnover of DGCX’s products remained consistent.
DGCX’s Shanghai Gold Futures grew in April 2018 by 678 percent year-to-date, while India Gold Quanto Futures ticked up 73 percent year-over-year, DGCX said in a statement.
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Building on the standout performance, the DGCX witnessed high volumes in the currency segment, with its flagship Sterling contract signifying the growth trajectory in the first quarter. More specifically, Pound Sterling options recorded Average Open Interest (AOI) of 1,584 contracts.
Other notable performers on the DGCX last month were Brent Crude Oil Futures and other energy products, which saw a substantial jump in trading volumes year-on-year.
The DGCX also said its physically-backed Shari’ah-compliant gold contract, which commenced trading on March 29, has been very well received by investors. The product traded a volume of 314 kilograms of gold, valued at $13.39 million, since its debut.
Commenting on the results, Les Male, CEO of the DGCX, said: “We are delighted to see the Shari’ah Compliant Spot Gold Contract record an impressive debut with strong interest from investors. Its success demonstrates that there is high demand for innovative Islamic financial instruments that provide exposure to attractive assets, both regionally and internationally. Our G6 currency portfolio also continued to build on its strong start to the year with consistent growth throughout April. We remain upbeat that we will see increased trading activity as we approach the second half of the year.”