A gold futures contract may be developed by the Dubai Mercantile Exchange (DME) later this year, adding extra options for those buying gold in the city, it has been claimed.
Sources close to the situation told Reuters that the exchange has begun negotiations with certain gold market "players", although a platform for the trading has not yet been developed.
The launch of such a contract would pit the DME against the Dubai Gold and Commodities Exchange (DGCX), as well as against international players such as the Tokyo Commodities Exchange and COMEX - facilities that those with gold investments in Dubai already make use of.
Gold futures trading in Dubai has seen high levels of success in recent times. The DGCX released a report last week that showed a 95 per cent increase in the trading of gold futures on the exchange last month.
"DME is looking at a number of metals contract, but gold is their priority," the DME source said.
Elsewhere, the introduction of gold futures trading has been met with success in locations such as Shanghai, which saw trading on its newly launched gold futures exchange hit strong levels on its first day last month, the Xinhua news agency reports.
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