Shariah Spot Gold sees impressive DGCX debut
DGSG traded over 314 kilograms of gold worth $13.39 million since inception. The product was the first of its kind to be launched in the GCC, and its success demonstrates a strong appetite for exchange-traded Islamic products among investors.
“We are delighted to see the Shariah Compliant Spot Gold Contract record an impressive debut with strong interest from investors. Its success demonstrates that there is high demand for innovative Islamic financial instruments that provide exposure to attractive assets, both regionally and internationally. Our G6 currency portfolio also continued to build on its strong start to the year with consistent growth throughout April. We remain upbeat that we will see increased trading activity as we approach the second half of the year,” said Les Male, CEO of the DGCX.
The contracts success reinforced the strong trading activity of the Exchanges other gold products, with trade volumes of DGCXs Shanghai Gold Futures growing in April by 678 per cent year-to-date, and India Gold Quanto Futures growing by 73 per cent year-on-year. The rising popularity of gold trading comes amid ongoing political and economic uncertainty.
DGCX continued its trajectory throughout April and has now traded over 7.18 million contracts this year across all products, up 35 per cent from last year. The main drivers, other than the aforementioned gold contracts, of last months trading were G6 currency pairs and Indian rupee Futures.
Other notable performers on the DGCX last month were the pound Sterling, which recorded Average Open Interest (AOI) of 1,584 contracts, and Brent Crude Oil Futures, which saw a substantial jump in trading volumes year-on-year.