Dubai DGCX waives trading fees for Shariah-compliant gold contracts
The Dubai Gold and Commodities Exchange (DGCX) has unveiled a strategic move to boost trading volumes and entice fresh investors by scrapping trading fees for its Shariah-compliant spot gold contract.
Enhancing Trading and Attracting Investors
The contract, represented by the symbol ‘DGSG’, will experience fee waivers from August 21, 2023, until December 31, 2023. This initiative follows the regulatory approval received from the UAE Securities and Commodities Authority (SCA).
Comprehensive Fee Waiver
During the specified period, DGCX is extending a comprehensive waiver of its own fees and those of the Dubai Commodities Clearing Company. This encompasses fees linked to trading, clearing, and delivery processes. However, it's noteworthy that the waiver does not encompass the SCA fee, which remains at $0.03.
Expanding to Gold Futures and New Contracts
In an effort to create a welcoming trading environment, DGCX is aggressively seeking SCA's approval to extend fee waivers to its gold futures contracts. In addition, the exchange is continuously working on launching new goods. Notably, the exchange is considering the addition of a spot silver contract that complies with Shariah in order to diversify its assortment of trading products.
Robust Gold Demand in 2023
Amidst market fluctuations, the demand for gold has demonstrated resilience throughout the first half of 2023. The price of gold achieved a notable 5.4% rise, concluding the period at $1,912.25 per ounce. This sustained demand reinforces the precious metal's enduring allure as an investment option even in a dynamic market landscape.
DGCX's strategic fee waiver serves as a testament to its commitment to fostering robust trading activities, providing enhanced opportunities for investors, and expanding its offerings to align with market demand and preferences.