(Kitco News) - North American investment demand remains a dominant force for gold, but the precious metal continues to establish its credentials as an important global monetary asset and risk hedge.
The Dubai Gold & Commodities Exchange (DGCX), the Middle East’s largest digital marketplace, reported on Wednesday that more than 1 million contracts had been traded by the end of June, marking a 30% year-on-year increase in average daily volumes.
The exchange said that the value of its spot gold contract volume soared nearly 200% compared to the end of the first half of 2024.
The exchange also noted that its standout performer so far this year is the Shariah-compliant Gold Spot Contract (DGSG). The contract saw the value of trades increase to $46.8 million in the first half of this year, compared to $15.6 million in the first six months of 2024.
“DGCX has seen exceptional momentum in the first half of the year, with nearly USD 47 million traded through our spot gold contract alone – a 200% year-on-year increase – and a 30% rise in daily volumes across the exchange, driven by demand for DGSG and INR Quanto futures,” said Ahmed Bin Sulayem, Chairman and Chief Executive Officer of DGCX, in a statement.
“This performance not only places DGCX firmly on course to surpass its 2024 results but also reinforces its role as a critical pillar in the region’s financial infrastructure,” he added. “As global market conditions grow more complex, the exchange’s rising adoption by Shariah-based investors, bullion traders, and institutional participants alike highlights the growing demand and broad appeal for sophisticated, secure, and transparent hedging tools – a position we expect will strengthen further as we continue to reinforce Dubai’s standing as a world-class centre for commodities and derivatives trading.”
The United Arab Emirates continues to establish itself as an important commercial hub within the global gold market. In a report published last year, the Dubai Multi Commodities Centre (DMCC) announced significant growth in gold trading.
The DMCC said that $129 billion in gold flowed through Dubai in 2024, marking a 36% increase compared to the previous year.
As part of DMCC’s dedicated support for the precious metals industry, DGCX plays a pivotal role in Dubai’s status as one of the world’s largest trading hubs for gold. With over 1,500 member companies operating in the gold and precious metals sector within DMCC, the exchange complements the international district’s broader offering in physical and financial trading infrastructure.
Gold trading in the Middle East has picked up in recent years as Asian investors have demonstrated an insatiable appetite for the metal. Although higher prices have caused investors to pare back their recent activity, analysts expect robust interest to continue through 2025. Specifically, analysts note that Chinese investors have limited options when it comes to protecting their capital, and gold remains the most reliable asset to own.
