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.