By Sam Bridge
Dubai Gold & Commodities Exchange CEO says investors are bearish on the global economy and increasingly turning to products that can help them manage their risk
The Dubai Gold & Commodities Exchange (DGCX) saw its flagship gold futures product continue its strong start to the year in February, with year-to-date volume growth of 773.6 percent compared to the same period last year, aided by a multi-year record in January.
DGCX said the spike in trading is a response to a global backdrop of economic uncertainty, with investors increasingly looking towards safe-haven assets.
Total volumes on the DGCX in February hit 1.49 million contracts, while year-to-date Average Open Interest (AOI) was 367,878 contracts, up from 243,409, a growth of 51.1 percent.
Trading across the DGCX’s G6 currency pairs was also strong in February, with the asset class recording overall volume growth of 18.1 percent, with an underlying value of $7.2 billion.
The EURUSD Futures contract was the most prominent, trading 76,595 contracts, up 41.1 percent month-on-month.
Les Male, CEO of DGCX, said: “Unforeseen events during the first two months of this year have sent shockwaves across global markets. Investors are bearish on the global economy and increasingly turning to products that can help them manage their risk.
"This is reflected in the trading we are seeing on the DGCX, in which a greater number of investors are recognizing the value our products offer for hedging purposes. The rest of the year promises to be particularly busy for us, as we prepare to launch new locally relevant products to provide our members with a wider range of tools to safely protect their investments.”
Subject to regulatory approval, the DGCX also has plans to launch new FX products, including the launch of FX Rolling contracts – perpetual rolling FX contracts for three currency pairs.