Dubai’s DGCX introduces new physical gold futures and spot gold contracts

Dubai’s DGCX introduces new physical gold futures and spot gold contracts

Dubai Gold and Commodities Exchange (DGCX) has launched two new products: Physical Gold Futures and Spot Gold Contracts. The products are designed to be used together by traders, similar to a repurchase agreement (repo), to get short-term liquidity from banks through the spot gold markets while opposite physical future trade is done at the same time for the trader to receive their gold back and the bank to get their funds. Both the newly launched products can be traded on the DGCX EOS Trader platform, where traders manage risk, protect value and grow portfolios by buying and selling commodity and currency derivatives. Gold that is delivered under the Spot Gold Contract shall be of a fineness of 995 parts per thousand and to the ‘UAE Good Delivery quality’ specification within the chain of custody, as determined by Dubai Multi Commodities Centre. The DGCX clearing house acts as the central counterparty to all transactions. Ahmed Bin Sulayem, CEO of DGCX, said: Over the last year, gold has become a solid top tier asset class globally, as banks have increasingly started to accept it as collateral from traders and institutions looking for liquidity in the markets. The UAE is a regional financial