ID :
78033
Wed, 09/02/2009 - 15:53
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https://www.oananews.org//node/78033
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DGCX volumes increase in August
Dubai, Sept 2, 2009 (WAM) - Volumes at the Dubai Gold and Commodities Exchange (DGCX) have shown a marked resilience in August. While the average daily traded volumes have shown an increase in the range of 1500 to 2000 lots, including all products compared to July, the numbers have more than doubled over the same period last year.
Analysts said August is traditionally the weakest month for commodity exchanges across the world.
The average daily volume at DGCX in the last week of August stood at 7004, reaching a high of 8,709 lots on August 25. Trade volumes across August averaged more than 7,000 contracts with a weekly high of 7,162 contracts in the first week. The average daily volume in July was about 5,500 contracts. The volumes in August 2008 stood at 2,500 lots a day.
Trade in August was led by gold and currency futures – especially in Japanese yen and British pound.
"Volumes in August have been surprisingly good. Although currency futures suffered for a while, trade picked up later. The leader has been gold and trade volumes for the bullion have been very encouraging," said Sajith Kumar PK, Chief Executive of JRG International Brokerage DMCC, which trades on DGCX. The figures reflect a rising interest in commodities across the world, said Sajith.
Gold futures averaged above 2,000 lots (each lot comprising 1kg gold) daily at the exchange and once breached the 3,000 lots a day mark. In July, gold accounted for a total of 64,837 contracts out of a total volume of 114,411 contracts across product segments traded on DGCX. Japanese yen came in the second in August and averaged at about 1,500 contracts a day. "Investors are growing more confident that the global recession is bottoming out. They are looking to re-invest, and commodities are being viewed by many investors as still representing extremely attractive investments from a medium-term perspective of the next few years. This investment demand has been helping move commodities prices higher," New York based CPM Group said in a report on DGCX.
"On a short-term basis, there is some nervousness in the markets that prices have risen too high too fast, and are setting themselves up for a downward correction.
"The fact that such a sell-off has not appeared during July and August, traditionally the weakest months for most commodities prices, suggests the extent to which continued investor interest in commodities may over-ride the urge for a round of profit-taking." Any decline in commodity prices, most likely over the next two-three weeks, may be rather limited in scope, however, investors may take it as a buying opportunity, said CPM.
Analysts said August is traditionally the weakest month for commodity exchanges across the world.
The average daily volume at DGCX in the last week of August stood at 7004, reaching a high of 8,709 lots on August 25. Trade volumes across August averaged more than 7,000 contracts with a weekly high of 7,162 contracts in the first week. The average daily volume in July was about 5,500 contracts. The volumes in August 2008 stood at 2,500 lots a day.
Trade in August was led by gold and currency futures – especially in Japanese yen and British pound.
"Volumes in August have been surprisingly good. Although currency futures suffered for a while, trade picked up later. The leader has been gold and trade volumes for the bullion have been very encouraging," said Sajith Kumar PK, Chief Executive of JRG International Brokerage DMCC, which trades on DGCX. The figures reflect a rising interest in commodities across the world, said Sajith.
Gold futures averaged above 2,000 lots (each lot comprising 1kg gold) daily at the exchange and once breached the 3,000 lots a day mark. In July, gold accounted for a total of 64,837 contracts out of a total volume of 114,411 contracts across product segments traded on DGCX. Japanese yen came in the second in August and averaged at about 1,500 contracts a day. "Investors are growing more confident that the global recession is bottoming out. They are looking to re-invest, and commodities are being viewed by many investors as still representing extremely attractive investments from a medium-term perspective of the next few years. This investment demand has been helping move commodities prices higher," New York based CPM Group said in a report on DGCX.
"On a short-term basis, there is some nervousness in the markets that prices have risen too high too fast, and are setting themselves up for a downward correction.
"The fact that such a sell-off has not appeared during July and August, traditionally the weakest months for most commodities prices, suggests the extent to which continued investor interest in commodities may over-ride the urge for a round of profit-taking." Any decline in commodity prices, most likely over the next two-three weeks, may be rather limited in scope, however, investors may take it as a buying opportunity, said CPM.
