Against the global backdrop of soaring inflation, a potential rise in interest rates, as well as high crude oil prices, the Dubai Gold & Commodities Exchange (DGCX) registered total trades of nearly $8 billion in January.
The exchange said it saw monthly average open interest (AOI) of 128,828 contracts last month as well as traded a total value of $7.95 billion as members looked to further manage their risk.
Market participants were drawn to safe-haven assets such as precious metals during the month, with the DGCX Group’s gold contract recording a year-on-year average daily volume growth of 95 percent during January.
During the month, participants also actively leveraged the exchange’s pool of Indian Rupee (INR) currency contracts.
Les Male, CEO of DGCX, said: “Volatility in the equity markets, expectations of interest rate hikes and high oil prices – amongst several other factors – had an impact on trading in January, as market participants looked for safety in response to global economic headwinds.
“Looking ahead, we see these trends continuing in the short-term and expect increased demand for our derivative products as market participants look to hedge and off-set their risk.
“We can also share that we have a robust pipeline for 2022 and will soon introduce a number of contracts and services that will appeal to our member base.”
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