DGCX reports 16% growth in number of contracts to 8.23m
Volume of gold contracts sees 78% increase compared to previous year
Dubai Gold & Commodities Exchange (DGCX) reported an 8.24 per cent increase in the value of contracts for 2022 at $162.01 billion.
The total number of contracts grew 16 per cent at 8.239 million for the whole year, it added.
With inflation rising steadily over the course of 2022, investors increasingly turned to gold, with DGCX reporting a 78 per cent increase in the volume of gold contracts traded on the exchange compared to the previous year.
Throughout the year, the exchange saw steady trading in the Indian rupee as market participants looked to hedge their exposure to one of the world’s fastest-growing economies. DGCX also saw volume growth for the Yen, Australian and Canadian Dollars and increased investor interest in the Euro and British currency.
Double-digit growth
Ahmad Bin Sulayem, CEO of DGCX, said: “During 2022, DGCX delivered significant double-digit growth across multiple metrics in the face of continued economic challenges around the world. Within this context, with participants focusing on currencies and gold, DGCX launched physical gold and spot gold contracts. DGCX also made history by being the first UAE exchange to list Israeli Shekel Futures, delivering even greater product diversity and liquidity for traders. As we look to 2023, DGCX will continue to expand its operations by building new partnerships and providing investors and market participants with products and services that are highly innovative and add value.” In 2022, DGCX launched new Physical Gold Futures and Spot Gold Contracts as part of its focus on becoming the region’s de facto gold pricing standard. The two products provide traders and financial institutions with the ability to use physical gold as collateral to access affordable sources of short-term lending, backed by the guarantee provided through the exchange clearing house.
The move followed the signing of a memorandum of understanding (MoU) between DGCX and precious metals firm FinMet to expand the DGCX product offering and market participation.
DGCX also announced its intention to list Israeli Shekel Futures from June 2022 as part of its focus on diversifying its FX product offering and fastgrowing currency segment. The listing of Israeli Shekel Futures also represents a significant step in building on the UAE’s strategic relationship with Israel.
As we look to 2023, DGCX will continue to expand its operations by building new partnerships and providing investors and market participants with products and services that are highly innovative and add value.”
Ahmad Bin Sulayem | CEO of DGCX