The Dubai Gold & Commodities Exchange (DGCX) sees its total trade grow to $8 billion in January, despite the soaring global inflation, potential rise in interest rates as well as rising crude oil prices.
The exchange said it saw a monthly average open interest (AOI) of 128,828 contracts last month as well as traded a total value of $7.95 billion as members looked to further manage their risk.
Market participants were drawn to safe-haven assets such as precious metals during the month, with the DGCX Group’s gold contract recording a year-on-year average daily volume growth of 95 percent during January.
During the month, participants also actively leveraged the exchange’s pool of Indian Rupee (INR) currency contracts.
Les Male, CEO of DGCX, said: “Volatility in the equity markets, expectations of interest rate hikes and high oil prices – amongst several other factors – had an impact on trading in January, as market participants looked for safety in response to global economic headwinds.
Thus, those short-term continuing trends are expected to boost the demand for the company’s products as the investors are constantly attracted to safe-haven assets. This will result in a number of contracts and services which will satisfy the member base.
