Dubai Gold and Commodities Exchange records ‘extraordinarily busy’ April

The Dubai Gold and Commodities Exchange (DGCX) witnessed a 653.45 percent year-on-year growth in trading of its G6 currency portfolio in April, as activity overall surged despite the economic uncertainty caused by the coronavirus.

Among the G6 currency pairs, Euro and British Pound Futures contracts were the most prominent, recording y-o-y ADV growth of 405.56 percent and 318.48 percent respectively.

Meanwhile, the DGCX’s Gold Futures product continues to perform strongly, and has now recorded year-to-date volume growth of 547.31 percent compared to the same period last year.

Les Male, CEO of DGCX, said: “April was another extraordinarily busy and volatile month for global markets. Oil prices plummeted amid forecasts that demand will plunge this year, gold prices surpassed the $1,700 threshold once again, while the US dollar steadied or weakened against most major currencies, having previously strengthened in the first quarter of this year.

“During these periods of uncertainty, markets such as the DGCX support the resilience of the global and regional economy by allowing investors and businesses to protect their positions against price fluctuations.”

Total volumes on the DGCX in April totaled 810,000 contracts, valued at $20.02 billion.  The exchange last month also recorded Average Open Interest (AOI) of 246,080 contracts, bringing the AOI for 2020 to 347,955 contracts, up 20.42 percent from last year.

Courtesy: Arabian Business