The rise of Dubai as a gold trading hub

[pmbug]

...
“In recent years, we have witnessed historic shifts in the precious metals market, driven by Western sanctions that have forced record gold buying by central banks and led many countries to rethink their reliance on the US dollar,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of the DMCC, in a statement. “We are seeing a new gold corridor form across Asia, with Dubai at its center – exemplified by the UAE’s rise to become the world’s second-largest gold trading hub last year.”

The optimistic outlook comes as the UAE has seen significant growth in gold trading this year. The DMCC reported that $129 billion in gold flowed through Dubai in 2024, marking a 36% increase compared to the previous year.

The DMCC also noted that the UAE has become the second-largest gold trade hub worldwide, surpassing the London market.
...

UAE surpasses London to become the world’s second-largest gold hub as Asian demand grows - DMCC

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

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I'm guessing that a large part of Dubai's trade volume is really just Indians looking to bypass onerous import tariffs (Dubai gold gets a discount).

 

[nickndfl]

London is turning into a diversity backwater that is being taken over by barbarians. As soon as it's hollowed out they will go after the elites in their castles.

 

[Peter89]

Great idea to open a thread about UAE/Dubai's gold market!
Probably we should start following the price (in dirham) pm are traded at over there just as we do with SGE/SGFE.

 

[pmbug]

... we should start following the price (in dirham) pm are traded at over there just as we do with SGE/SGFE.

If you have a source for this info, please share.

 

[pmbug]

If you have a source for this info, please share.

From the link you posted in another thread, I found this:

Market Watch

marketwatch.thedgcx.com

Once the table loads, you can select "My Watch List" options for "DGCX Precious Metals" and "Silver". It looks like the Bid and Ask for DSSC are being quoted in USD?

 

[Ttazzman]

From the link you posted in another thread, I found this:

Market Watch

marketwatch.thedgcx.com

Once the table loads, you can select "My Watch List" options for "DGCX Precious Metals" and "Silver". It looks like the Bid and Ask for DSSC are being quoted in USD?

at first glance it sure looks like they are showing trades real time for both au and ag at the bottom of the table .....

 

[pmbug]

I think I saw some fine print saying quotes were 10 minutes delayed.

 

[Peter89]

at first glance it sure looks like they are showing trades real time for both au and ag at the bottom of the table .....

The volume for gold and silver contracts is 0, so no trades.

Close rates for silver are in $, for gold I can't understand.
I don't think that marketwatch page is helpful.

 

[Ttazzman]

The volume for gold and silver contracts is 0, so no trades.

Close rates for silver are in $, for gold I can't understand.
I don't think that marketwatch page is helpful.

i only looked at it briefly ......but when i looked at it approx 5am central time it seemed to be realtime trading ..........when i looked at it later that morning it appeared to not be trading and had what looked like closing charts etc.....now when i look at it, it is obviously dead and not trading.....

i didnt really have time to look it over good and get a understanding of what information it was showing but i thought i would put that observation out there

 

[Peter89]

i only looked at it briefly ......but when i looked at it approx 5am central time it seemed to be realtime trading ..........when i looked at it later that morning it appeared to not be trading and had what looked like closing charts etc.....now when i look at it, it is obviously dead and not trading.....

i didnt really have time to look it over good and get a understanding of what information it was showing but i thought i would put that observation out there

You are right, apparently that marketwatch page follows the trading hours of the DGCX.
Right now it's live - bid/ask price getting updated in real time.
Other that that, it doesn't make any sense to me: the close price of the January 2025 contract $2,130?
and 0 - zero - volume on all 18 gold related contracts?

 

[Peter89]

If you have a source for this info, please share.

of course I have boss : )

The first thing to do is avoid websites that simply translate the Western $ gold price into dirhams.
That said, I found these two sites

Live Price Chart

Find today's gold price in Dubai (UAE) on our live gold rate chart available for different Karats - 18, 21, 22 & 24. (Gold prices are displayed in AED)

mintjewels.ae

Historical Gold Rates - Dubai, UAE

Check gold rates in UAE, Dubai for past 10 days

gulfnews.com

There are other sites - like this one - but these two offer not only a list of rates but a chart.

As the Dubai gold market is bigger than the DGCX Exchange the rates published by physical users like the Dubai Gold & Jewellery Group should get our attention. Interestingly - and confirming that the Dubai gold market is a market for physical gold - they publish rates for gold 24 but also for 22, 21 and 18 carats.

So, looking at the Dubai price,
1g Dubai gold = 321 dirhams, 1 dirham = $0,27= $86
1g Western gold = $85

So, gold in Dubai trades slightly above Western price, but not significant premium, imo