Dubai gold trade hits 580 tonnes

posted on 16/11/2011: 102 views

Dubai's total gold trading volumes in H1 2011 reached 580 tonnes (average price US$1,455) and exports during the period were down from 225 to 214 tonnes reflecting a greater consumption in the local market, said Ahmed bin Sulayem, Executive Chairman of Dubai Multi Commodities Centre, in Dubai on Sunday on sidelines of 8th Dubai City of Gold Conference.

The annual global event for the gold, jewellery and diamond industries is organised by the Dubai Gold and Jewellery Group.

Among DMCC's initiatives, are the VoD, Gold Bullion. "Launched in 2007, these 24-carat gold coins celebrate the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and Dubai's status as the ‘City of Gold'. They have proven to be extremely popular as both souvenirs and gold investments — having sold 26,000 to date,” he said.

"This success led us to develop the UAE's first gold bullion coin in August of this year in recognition of the visionary leadership of the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan,” he said.

Sulayem said that as of the end of September, the number of gold securities rose to a total of 8,761 on the exchange, a 1,280 per cent increase on the first and second quarters combined. Total value reached US$2.2 million for the first ten months of 2011, a rise of 92 per cent for the same period last year.

"One of the other initiatives that we are very proud of is our innovative and award-winning Global Multi Commodities Receipt (GMR) platform. Since the inception of GMR, DMCC facilitated transactions of more than US$1.3 billion. In response to the increased demand, DMCC is in the final stages of enhancing its existing GMR platform where it is working to improve the IT infrastructure and legal framework as well as new value added features,” Sulayem said.

Sulayem said: "We are hosting and funding a private OECD seminar alongside this conference to discuss the proposals with UAE market participants. We are intent on raising more general awareness for the guidance here in the UAE, but also to ensure that any unique characteristics of the local gold market are taken into consideration in the global deliberations.

He said that DGCX volumes have been growing at 58 per cent for last six years and for this year, as of date, stands at 3.37 million lots worth US$ 159 billion. YTD Average Daily Volumes (ADV) are up 99 per cent from last year, with 15,145 contracts, valued at US$ 713 million.

Currencies represent most prominent segment in DGCX volumes today. It has achieved a record growth of 165 per cent since FY2010 with 2,923,172 contracts, he added.

Sulayem said that DGCX launched first ever Indian Rupee futures contract in the world and this year it has contributed 75 per cent of DGCX volumes while growing more than 650 per cent over FY2010. Precious metals volume reached 413,951 contracts valued US$ 19.8 billion in 2011 YTD, he said.

He said that DGCX recorded the highest ever monthly volume of over half a million contracts in August 2011 Sulayem added that Euro futures reached its highest ever monthly volume of 96,202 contracts valued at US$6.87 billion in August.

Sami Al Qamzi, DG, Dubai Economic Development Department, inaugurating the conference said that gold plays a key role in Dubai's non-oil trade and Dubai has emerged as one of the foremost centre for gold. Dubai has offered facilities for the gold to flourish. – Khaleej Times

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