The Dubai Gold and Commodities Exchange (DGCX) is planning to introduce the first-ever spot gold contract in the country. This means that UAE-based investors will be able to buy and sell physical gold on a domestic exchange.
The spot gold contract may be launched before the end of the year, although it is still in planning stages.
A spot gold contract is used to buy and sell physical quantities of the precious metal on an exchange. Today only gold futures contracts are available in the UAE, contracts based on the price of a quantity of gold at a set point in the future.
The move to introduce a spot gold contract is expected to further underpin Dubai’s growing importance in the global gold trade as almost a third of all the physical gold traded in the world passes through the emirate.
