DUBAI, July 16 (Xinhua) -- While the precious metals
derivative market DGCX reported lately that traded contracts doubled in
the first half of 2013, jewelry shopkeepers feel the squeeze that
physical gold loses its shine amid the price slump and due to new U.S.
sanctions on Iran.
Source from (Xinhuanet): http://news.xinhuanet.com/english/business/2013-07/16/c_132546815.htm
Published: July 17, 2013
"Investors continue to exit the gold market in favor
of other asset classes, most likely to be investing in equities,"
Gerhard Schubert, the head of precious metals at bank Emirates NBD in
Dubai, said on Tuesday.
The price of gold hit a 3-year low at around 1,180 U.S. dollars per
ounce in June, before recovering slightly. The fall of gold has
motivated retail investors to shift capital from precious metals to
stocks.
On July 1, new U.S. sanctions on gold trade with Iran went into
effect. "Many gold traders are confused and refrain from selling to the
thousands of Iranian tourists," said Mohammed Ala, a Jordanian
shop-owner in the gold souq in the old town of Deira.
Despite the sharp decrease in the yellow metal's value, institutional
and private investors continued to buy and sell futures contracts at
the Dubai Gold and Commodities Exchange (DGCX) which reported that for
the last six months that 7.72 million contracts changed hands, an
increase of 101 percent year on year.
Besides futures and options on gold, derivatives contracts on silver
and currencies such as the Indian rupee are also traded at the DGCX, the
only derivatives market by international standards in the Middle East.
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