The Dubai Gold & Commodities Exchange (DGCX) said it witnessed a surge in trading on its gold futures product last month, as increasing geopolitical tensions across the globe drove investors towards safe-haven assets.
The product recorded month-on-month (M-O-M) average daily volume growth (ADV) of 507.4 per cent, and year-on-year ADV growth of 225.5 per cent, while also registering M-O-M Average Open Interest (AOI) growth of 90.7 per cent.
Les Male, CEO of DGCX, said: “Gold reasserted its position in June as the safe-haven asset of choice, as investors worldwide flocked to the precious metal on the back of fresh speculation around lower Federal Reserve rates, a weak US dollar, and heightened geopolitical tensions between the US and Iran. This was strongly reflected on the DGCX, with our Gold Futures contract registering its best month since November 2016.”
The DGCX traded over 1.73 million contracts in June, with the Exchange’s currency portfolio also experiencing an upswing in trading, particularly its Indian Rupee (INR) product suite. INR Mini Futures registered its highest quarterly AOI with 114,817 contracts between April and June, while INR Quanto Futures, the index pricing of the Indian Rupee US dollar currency pair, registered its best month since March 2016 with a total of 578,872 contracts traded. Euro Futures was another standout performer, registering its highest quarterly AOI with 3,582 contracts, building on its strong trajectory from May as Brexit talks continue.
“We have invested significant time and energy this year on building our product portfolio and strengthening our current contracts. We are thrilled to see continued growth as an increasing number of investors recognise the value they offer for hedging purposes, particularly in periods when markets are experiencing sharp volatility,” added Male.