Confirmed a senior managers in Dubai Gold & Commodities Exchange that hedging instruments actors will be a decisive factor in the province of gold traders on the profitability of their business within the current economic climate.
Said Samir Shah, Chief Business Officer at DGCX that gold prices have seen significant growth over the past two years but that the sharp price fluctuations of the precious metal is the hallmark of the gold market in the current period, which continuously threatens the continued profitability.
He confirmed that the hedging of price risks is vital, especially in the current environment, which may lead the many possible developments to a significant increase in the price fluctuations including the eurozone crisis and a slowdown in the growth of emerging markets such as China, elections, and political risks and the possibility of implementing the third phase of quantitative easing “QE 3 “and the financial situation of the United States.
Dubai Gold & Commodities Exchange had recently hosted a workshop on “hedge traders gold” in collaboration with the Dubai Gold and Jewellery in order to explain the need to hedge in light of the current economic environment, volatile and tools provided by the stock exchange to help traders to protect their profits.
Shah said that gold futures contracts from Borse Dubai Gold and Commodities is working to provide exceptional tool to hedge exposure to price risk in today’s markets, allowing participants to achieve profits when the market moves in any direction.
For his part, Peugeot Joy General Manager of Dubai Gold and Jewellery Group this workshop as an excellent opportunity for traders of gold in Dubai to understand the strategies multiple reliable risk management gold prices when trading on the platform Borse Dubai Gold and Commodities confirming the group’s commitment to work with institutions such as the Dubai Gold and Commodities in order to support the development of the gold market in Dubai.
Expects DGCX and growing interest in commodities trading gold futures contracts on the platform where the stock market enjoys a good position allows it to meet this growing demand.
Referred to the size of gold futures traded on DGCX and goods has grown by 111 percent in June compared with the same period last year due to the increasing demand for trading these contracts due to increased price volatility as high back size of gold futures also the significant steps taken by the stock exchange to support gold futures contracts.
Has played DGCX since its inception a vital role in strengthening the financial system to the UAE by providing hedging instruments and mechanisms that allow market participants the implementation of the conversion processes and risk management within the well-regulated environment.
The gold futures contract of the underlying contracts in DGCX and goods accounting for these contracts since its launch in 2005 a new benchmark for the pricing of gold in the UAE, a futures gold bars weighing one kilogram and higher purity 0.995.
source :wam
