DUBAI: DGCX Launches New Physical Gold Futures and Spot Gold Contracts

Tuesday October 4 2022

On 3^rd October 2022, Dubai Gold and Commodities Exchange (DGCX) has announced the launch of new Physical Gold Futures and Spot Gold Contracts as it continues its strategic goal of becoming the de facto gold pricing standard in the region.

The launch of the two products provides traders and financial institutions 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 acting as central counterparty. The products are designed such that they can 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. The products are available for trading.

DGCX also announced that the first transaction was successfully completed between DGCX member, Paloma Precious Dubai Multi Commodities Centre (DMCC) and one of the most reputable banks in the UAE as it became the first trader to benefit from access to short term liquidity using the newly launched products. The physical gold bars changing hands in this transaction are “Emirates Gold” which are part of the UAE Good Delivery standard.

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