First-Ever Spot Gold Trading on The DGCX Planned for Later This Year, Why Not Make It Happen Faster?
by Peter Cooper, Arabian Money
Gold Seek
The Dubai Gold and Commodities Exchange will launch its first-ever spot gold contract later this year allowing UAE traders to buy and sell physical gold on a local exchange for the first time. Gold traders based in the City of Gold are ecstatic about this news reported in The National today.
It’s perhaps surprising that this has taken so long. Presently the DGCX only offers contracts based on the future price of gold, not the current or spot price.
Positive reaction
Traders are delighted by the news and they think it will do a lot to boost liquidity in the Dubai gold market by eliminating the need for offshore credit and collateral to trade in gold. The focus for Dubai is always on the physical trade in gold and the new spot gold contract hits that mark. Exchange traded gold products have not been as successful in Dubai as elsewhere in the world.
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