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DGCX's Jan. volume edges up 17 per cent

The average number of contracts traded increased by 37 per cent in January 2006 as the value of gold futures traded increased by 27 per cent.

Though trading was conducted only on 18 days during January as compared to 21 days in the previous month, higher number of gold futures contracts was traded in January 2006. Correspondingly average number of contracts traded per day also increased from 263 in December to 360 in January 2006.

In value terms, $115.09 million of gold futures were traded in January 2006 as compared to $90.67 million in December 2005 – an increase of 27 per cent. The total value of gold futures traded on DGCX since inception (November 22, 2005) now stands at $224.12 million (13,154 kilograms of gold futures contracts).

The average daily volume of $ 6.39 million in January 2006 signifies the robustness of the risk management system and efficient clearing & settlement process put in place by the Exchange through its two clearing banks – National Bank of Dubai and HSBC.

Out of total six Gold futures contracts listed at DGCX, the near month contract expiring in February 2006 was traded most heavily. 4606 February 2006 contracts were traded in January as against 5511 in December. As the February 2006 contract approached expiry/delivery, more interest was seen in April 2006 contracts. 1868 April 2006 contracts were traded in January as against 16 in December 2005.

Gold prices at DGCX very closely reflected the price trend at major international markets.