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Tuesday, 6th June 2006 (3890 views)

Gold and silver futures contracts traded on the Dubai Gold and Commodities Exchange (DGCX) increased 24 per cent in May, with gold hitting a 25-year high.

A total 79,660 contracts were traded over the course of the month, 6,062 in a single day. This compares with 64,444 gold and silver futures in April, according to Gulf News.

The total value of the contracts stood at $1.34 billion in May, an increase from $798 million in April and the highest monthly value since the exchange's inception.

However, precious metals also experienced a volatile month in May, with both silver and gold seeing high single-day falls. On May 24th gold prices suffered their most intense single day plunge to date, $33.40 per troy ounce.

Speaking to the Commodities Investment World Middle East 2006 conference yesterday, Dr David Rudledge, director of the DGCX, said that the increase in trade in commodities had turned Dubai into a centre for price discovery.

He said the presence of the DGCX had "effectively opened the doors to commodities investment in the region", highlighting that the annual gold throughput in Dubai had now exceeded 500 tonnes.

"As a neutral location that is neither a producer nor the final consumer destination for a majority of commodities traded on the exchange, Dubai is the ideal centre for the price discovery of various commodities," he said.

 

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