Gold fu­tures trad­ing rises 94 per cent on DGCX

The National - News - - BUSINESS - THE NA­TIONAL Fo­cus 2019

Dubai Gold and Com­modi­ties Ex­change said its gold fu­tures trad­ing surged 94 per cent year-to-date while av­er­age daily vol­umes jumped five-fold year-on-year.

Over­all con­tracts for com­modi­ties traded on the ex­change stood at more than 21.85 mil­lion at the end of Novem­ber, val­ued at about $400 bil­lion (Dh1.47 tril­lion), DGCX said yes­ter­day, with­out pro­vid­ing com­par­a­tive fig­ures. In Novem­ber, DGCX traded 1.54 mil­lion con­tracts.

“The DGCX re­mains on track to break the an­nual vol­umes record we set in 2018 of 22.3 mil­lion con­tracts traded, and close the year on a high note,” said Les Male, chief ex­ec­u­tive of DGCX.

Gold has had a volatile year, buf­feted by un­cer­tainty around the global econ­omy as a re­sult of the US-China trade war and geopo­lit­i­cal risks from Brexit to Iran. On Fri­day, gold rose as the dol­lar fell. Spot gold was up 0.5 per cent on Fri­day, at $1,463.90 an ounce in New York.

Global de­mand for gold this year is fore­cast to rise to the high­est level in four years as higher con­sump­tion by jew­ellers off­sets a fall in pur­chases by cen­tral banks.

The world will con­sume 4,370 tonnes of gold this year, the most since 2015 and up slightly from 4,364 tonnes in 2018, con­sul­tancy Met­als Fo­cus said in its Gold

re­port in April. It pre­dicted gold prices would av­er­age $1,310 an ounce this year, up from $1,268 in 2018 and the high­est since 2013.

Gold pur­chases by cen­tral banks dropped sharply in the third quar­ter of this year with only 14 reg­u­la­tors around the world adding 1 tonne or more to their re­serves, ac­cord­ing to a re­port by the World Gold Coun­cil.

Cen­tral banks added 156.2 tonnes to their re­serves in three months to the end of Septem­ber, a 38 per cent year-on-year de­cline, the trade body said last month.

Over­all de­mand for the pre­cious metal was 1,107.9 tonnes in the third quar­ter, a 3 per cent year-on-year rise, on the back of a surge in ex­change-traded funds’ in­flows that helped to out­weigh softer de­mand else­where in the mar­ket, the coun­cil said. In­flows into ETFs have been helped by gold ris­ing 13.5 per cent against the dol­lar since the start of the year.

The DGCX re­mains bullish on grow­ing its port­fo­lio.

“As we turn our at­ten­tion to 2020, we will con­tinue to build on what we have achieved this year, fur­ther ex­pand­ing our reach to dif­fer­ent mar­kets and in­creas­ing the breadth of our prod­uct port­fo­lio to meet the hedg­ing and in­vest­ment needs of our par­tic­i­pants across the globe,” Mr Male said.

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