Author: Paul Ploumis08 Jul 2014 Last updated at 08:16:57 GMT

MUMBAI (Scrap Monster): The Dubai Multi Commodities Center (DMCC) has announced that the launch of spot gold contract by the Dubai Gold and Commodities Exchange (DGCX) would be delayed owing to changes in technical specifications.

According to Gautam Sashittal, Chief Executive, DGCX, the exchange has sought extra time in order to ensure that all contract participants are properly linked and to certify that all technical aspects run smoothly. Earlier, DGCX had planned to launch the spot gold contract in June this year. The gold contract will be for 1 kg of 0.995 purity gold. He added it is important to have spot contract since most of the gold that physically trades through Dubai goes to India for jewellery making.

As per most recent statistics released by DMCC, the value of gold that passed through Dubai surged to $75 billion in 2013 from $70 million in 2012. DGCX had been instrumental in converting Dubai into global precious metal trading hub. Almost 40% of the global physical gold trade came through Dubai. The annual traded volume rose 73% in 2013 to 2,250 tons of gold.

DGCX already trades gold futures. It also has commodities futures on silver, copper, WTI oil, Brent crude and polypropylene. The exchange plans to start a silver contract for immediate delivery, immediately after the launch of spot gold contract.