Dubai Gold & Commodities Exchange Plans Spot Silver After Gold

The Dubai Gold & Commodities Exchange will consider starting a silver contract for immediate delivery after spot gold is introduced in the third quarter.

The spot gold contract was delayed from starting last month partly because specifications had to be changed and also because of Ramadan this month, said Madyan Jabr, head of communications for the DGCX. The gold contract will be for 1 kilogram (32.15 troy ounces). DGCX already trades gold futures.

“Futures are to hedge risk, not to get the gold,” Jabr said. “What we need here is a transparent platform to provide physical gold to the market.”

The DGCX has also hired Sanjeev Vohra from the Singapore Mercantile Exchange as head of soft commodities to study adding agriculture products starting in the first quarter next year, Jabr said. Black pepper is a possibility, for example, he said. The exchange also plans to start options on the Indian rupee futures on July 18.

The exchange now has commodities futures on gold, silver and copper, WTI oil, Brent crude and polypropylene. It also has trading in the euro, sterling, Australian dollar, Canadian dollar, Swiss franc and Japanese yen against the U.S. dollar-and the S&P BSE Sensex Futures in equities.

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

To contact the editors responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net John Deane

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.