Thursday, 24th November 2005 (3319 views)

Dubai's new gold exchange is set to address one of the market's biggest anomalies by allowing Indian traders prime access to global futures exchanges.

India is the world's biggest gold importer, consuming between 700 and 800 tonnes of the yellow metal annually.

But until the Dubai Gold and Commodities Exchange (DGCX) began trading yesterday (November 22nd), Indian traders found it difficult to hedge gold and very few could access global futures exchanges.

"I can hedge in New York but for that I have to stay awake all night," an Ahmedabad-based bullion trader told the Gulf Daily News.

"Dubai is just one and half hours behind us and it will run almost parallel to our time zone."

Indian organisations were keen to get involved in the DGCX from the start - two of the exchange's three founders are Indian technology firms.

The Dubai trading hub takes its place alongside the worlds' other key commodities hotspots including London, New York, Chicago and Tokyo.

 

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