)
The Dubai Gold and Commodities Exchange (DGCX) today said it would launch its first spot gold contract in November.
"The gold contract will be for 1 kilogram having 99.5% purity. There will be a cash settlement with an option for physical delivery on T-2 basis," DGCX Chief Business Officer Ian Wright told PTI.
The physical delivery of gold would be done from three locations in Dubai, he said.
Asked if the exchange plans to launch spot silver contract, Wright said: "Not immediately. First we want to see the response for our spot gold contract and later decide on silver and other commodities."
He also mentioned that the gold contract would create a competitive market, which is right on the backyard of India, the world's largest consumer of the yellow metal.
Currently, DGCX offers futures trading in gold, silver, copper, Brent crude, polypropylene and currencies.
