DGCX Dubai Gold and Commodities Exchange
Throughout the year, the exchange saw steady trading in the Indian rupee. Image Credit: Dubai Media Office

Dubai Gold & Commodities Exchange (DGCX) reported an 8.24 per cent increase in the value of contracts for 2022 at $162.01 billion.

The total number of contracts grew 16 per cent at 8.239 million for the whole year, it added.

With inflation rising steadily over the course of 2022, investors increasingly turned to gold, with DGCX reporting a 78 per cent increase in the volume of gold contracts traded on the exchange compared to the previous year.

Throughout the year, the exchange saw steady trading in the Indian rupee as market participants looked to hedge their exposure to one of the world’s fastest-growing economies. DGCX also saw volume growth for the Yen, Australian and Canadian Dollars and increased investor interest in the Euro and British currency.

Ahmed Bin Sulayem, CEO of DGCX, said: “During 2022, DGCX delivered significant double-digit growth across multiple metrics in the face of continued economic challenges around the world. Within this context, with participants focusing on currencies and gold, DGCX launched physical gold and spot gold contracts. DGCX also made history by being the first UAE exchange to list Israeli Shekel Futures, delivering even greater product diversity and liquidity for traders. As we look to 2023, DGCX will continue to expand its operations by building new partnerships and providing investors and market participants with products and services that are highly innovative and add value.”

In 2022, DGCX launched new Physical Gold Futures and Spot Gold Contracts as part of its focus on becoming the region’s de facto gold pricing standard. The two products provide traders and financial institutions with the ability to use physical gold as collateral to access affordable sources of short-term lending, backed by the guarantee provided through the exchange clearing house. The move followed the signing of a memorandum of understanding (MoU) between DGCX and precious metals firm FinMet to expand the DGCX product offering and market participation.

DGCX also announced its intention to list Israeli Shekel Futures from June 2022 as part of its focus on diversifying its FX product offering and fast-growing currency segment. The listing of Israeli Shekel Futures also represents a significant step in building on the UAE’s strategic relationship with Israel.

Highlights of the year:

• Total volume traded: 8,239,546 lots

• Total volume traded: Up 16% year-on-year

• Total value traded: $162.01 billion

• Total value traded: Up 8.24% year-on-year

• Average open interest: 127,831 lots

• Average daily volume: 31,800 lots

• Highest daily volume: 90,107 lots (October 21, 2022)

• Gold volume: Up 78% year-on-year