DUBAI(BullionStreet): Middle East's largest commodity exchange, the Dubai Gold & Commodities Exchange (DGCX) is considering a spot gold contract from next year, reports Metal Bulletin.

“We are exploring a spot contract in Dubai to make it more relevant to the physical gold community and the physical gold trading activity in Dubai,” DGCX chief business officer Samir Shah told Metal Bulletin.

He said the DGCX sees a spot gold contract as particularly suitable for Dubai, an important global hub for physical gold trading.

Dubai is one of the largest trading centres for gold in the world.

“It’s an import and re-export centre, so 28% of the world’s gold gets traded out of Dubai,” he said adding that a lot of this is due to the gold souk, which is the single largest concentration of jewellers in any place in the world...

Dubai Gold & Commodities Exchange (DGCX) continues to expect high double-digit volume growth rate, he added.

Meanwhile, DGCX Gold Futures, one of the Exchange's flagship products, grew a substantial 121 per cent in November from the same month in 2011, registering 48,967 contracts.

Trading in the contract has steadily gained momentum in recent months with the price of the precious metal experiencing severe volatility amidst global economic uncertainty.