Singapore's Abaxx Exchange to Launch Gold Futures Amidst Soaring Prices
Singapore's Abaxx Exchange plans to introduce gold futures in the coming months, targeting Asia's growing demand for physical precious metals.
With gold prices reaching record highs in 2025, Abaxx aims to establish a futures market that bridges the gap between physical markets and futures exchanges.
"Asia is a kilobar market," said Abaxx's Chief Economist David Greely, highlighting the region's preference for larger gold ingots. "The Asian market deserves its own marketplace, and we think Singapore is natural for that."
Abaxx's futures contracts will be physically deliverable in Singapore, offering a unique connection between futures and spot markets.
"Having futures in New York and the physical market in London allows events to drive the price in the futures market away from the spot market," Greely explained.
Singapore's strategic location in proximity to key markets like China presents a natural opportunity for growth. In 2012, the city-state exempted investment-grade gold from value-added tax, further enhancing its appeal as a precious metals hub.
Abaxx recognizes the challenges of entering a market dominated by London's bullion market. However, the exchange is confident in its ability to secure liquidity providers for its gold contracts.
Singapore's financial infrastructure also contributes to its attractiveness for precious metals trading. Abaxx offers existing futures contracts for liquefied natural gas, carbon, and nickel sulfate, while it plans to launch lithium carbonate futures in March.
As the demand for electric vehicle metals and risk management tools grows, Abaxx aims to capitalize on its expertise in battery materials and risk management.