DUBAI, April 8 The Dubai Gold and Commodities
Exchange (DGCX) said on Saturday it was considering whether to
launch a new spot gold contract designed to be used by retail
investors and traders.
The DGCX signed a memorandum of understanding with the Dubai
Multi Commodities Centre, a body which facilitates commodity
trade flows through Dubai, and National Bank of Ras Al Khaimah
(Rakbank) to develop bullion products such as the
proposed retail spot gold contract.
The contract could be smaller in size than the existing DGCX
Spot Gold contract, which requires physical delivery of one
kilogramme gold bars and has been used by several institutional
investors since its launch in 2016, the exchange said.
The retail contract would be fully backed by physical gold
and held in electronic form with the option of physical
redemption. This would attract a wider pool of investors and
appeal to smaller, more risk-averse traders based in the region,
the exchange said.
The DGCX also offers trade in gold futures contracts and
said late last year that it had obtained a licence from the
Shanghai Gold Exchange to list Shanghai gold futures, which
would be the first yuan-denominated gold futures product offered
(Reporting by Andrew Torchia, editing by David Evans)