UAE’s DGCX trades total value of $13.68bn contracts in February 2022

In February, the Dubai Gold & Commodities Exchange (DGCX) registered trades with a total value of $13.681bn, as global markets responded to rising inflation, mounting oil prices as well as the Russian-Ukrainian crisis, which resulted in continued volatility during the last week of the month.

The exchange registered a monthly average open interest of 125,206 contracts during the month – and saw its precious metals’ portfolio lead trading activity. The group’s Gold Futures Contract recorded a year-on-year average daily volume (ADV) growth of 734 per cent, while its Silver Futures Contract registered a growth of 75 per cent.

DGCX saw a sharp spike in Indian Rupee trading, with its Rupee Mini Futures Contract, Rupee Options Contract and Rupee Weekly Contracts registering increases of 67 per cent, 206 per cent and 87 per cent respectively. DGCX’s West Texas Intermediary Futures gained traction following increased volatility in oil markets, with a year-on-year ADV growth of 136 per cent.

DGCX registered contracts valued USD 13.681 billion in February 2022, with a strong growth in #gold and #silver Futures. Read more of how the current market volatility is making changes to #trading activity: https://t.co/2BDxVC9kyO pic.twitter.com/sypMCboOAH

— DGCX (@DGCX) March 4, 2022

Les Male, CEO of DGCX, said: “Volatility has been a recurring theme over the past few months, with investors and traders continuing to grapple with a range of factors, including inflation, oil prices and geo-political developments. Against this backdrop, we have seen our precious metals’ portfolio lead trading activity on the exchange. We have also seen a sharp uptick in Indian Rupee trading as market participants look to hedge their exposure to one of the world’s fastest-growing economies.”

DGCX also announced that it will host two webinars for market participants this month. The first webinar will discuss a variety of hedging strategies related to trading its G6 Currency Future Contracts on March 10, while the second will focus on its Shariah Gold Futures Contracts.

Meanwhile, gold has climbed on increased demand for the haven asset on a global scale, after the shelling of Europe’s largest nuclear power plant raised concerns over the safety of the facility in Ukraine.

Read: Gold climbs as haven demand gains on ongoing conflict