DGCX Introduces First Same-Day Physical Gold Contract in Gulf

The Dubai Gold and Commodities Exchange (DGCX) will launch the Gulf region’s first same-day physically settled spot gold contract on Monday (June 22), providing bullion dealers a regulated alternative to traditional over-the-counter markets.

The Gold Spot T+0 Contract allows refineries, brokers, and clearing members to execute, clear, and take physical delivery of gold within a single trading day.

Settled in UAE dirhams, the contract is also backed by one-kilogram bars that meet the UAE Good Delivery standard.

Global precious metals trading often operates on settlement cycles of one day or longer, particularly in exchange-traded and over-the-counter markets. These timelines can require participants to commit capital for extended periods while remaining exposed to price fluctuations and counterparty risk until settlement is completed.

According to DGCX, the new contract reduces the settlement period to zero days, enabling eligible participants to execute trades and complete physical delivery through an approved vault network within the same trading day.

Ahmed Bin Sulayem, Chairman and Chief Executive Officer of DGCX, said the product is designed to handle the specific liquidity needs of the physical bullion market.

“As the market continues to expand, participants increasingly need faster, more efficient, and more transparent ways to trade and settle physical gold,” Bin Sulayem said. “The launch of the DGCX Gold Spot T+0 Contract marks an important step in strengthening Dubai’s gold market infrastructure.”

The spot contract launch follows a period of volume growth across the Dubai exchange.

In 2025, DGCX recorded a 30 percent year-over-year increase in total traded volume, reaching 2,048,556 lots. The total notional value of contracts executed last year also totaled US$46.96 billion. Average daily volumes expanded to 7,940 lots, with average open interest holding at 13,015 lots.

To mitigate default risk, all trades are routed through the Dubai Commodities Clearing Corporation (DCCC). Operating as the central counterparty, the DCCC guarantees the financial completion of the trade while coordinating the physical transfer of the metal.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.