As we see gold scale new highs amid heightened uncertainty posed by Trump’s tariff measures, the commodity derivatives change – MCX will from as we speak facilitate buying and selling in 10gm gold futures contract. Right here beneath are listed all of the salient options along with different pointers.
Pertinently gold futures in the day past’s commerce hit a brand new excessive of Rs 90,284 per 10 gm, whereas within the retail market it’s out there for 92,070 per 10 gm.
Key options of 10 gm gold futures contract
Buying and selling unit: 10 gm denomination
Supply centre: Devoted clearing home at Ahmedabad and extra supply centres at New Delhi/ Mumbai.
High quality specification: 999 purity. Additional, it needs to be serially numbered gold 10 gm provided by LBMA authorized suppliers or different suppliers as could also be authorized by MCX, to be submitted together with provider’s high quality certificates.
Funds pay-in: Tender/expiry day + 2 foundation: 12 pm
Supply pay-out: Tender/ expiry day + 2 foundation: 2 pm
Funds pay-out: Tender/ expiry day+ 2 foundation: 2 pm
Packaging: 10 gm gold with tamper proof solely
Making expenses for supply: Purchaser shall should pay Rs 300 (over and above the DDR) per 10 gm.
What led to the introduction of 10 gm gold futures contract?
In keeping with Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Restricted (RSBL), the introduction of the 10 gm gold futures contract – the primary of its sort being launched by the MCX was pushed by a number of components aimed toward enhancing market accessibility and bettering threat administration for traders together with:
· Standardized Contract Dimension: The ten gm contract caters to retail traders and small-scale merchants who could discover conventional 1 kg or 100 gm gold futures contracts too massive or capital-intensive.
· Value Discovery & Hedging: With rising gold costs and market volatility, this contract affords a extra exact and versatile hedging software for each particular person traders and jewelry companies.
· Elevated Participation: By reducing the entry barrier, MCX attracts a wider pool of individuals, together with small merchants and retail traders.
· Bridging Bodily Demand: The contract aligns carefully with India’s robust retail demand for 10 gm gold items, that are standard in jewelry purchases.
Benefits of 10 gm gold futures contract
· Decrease Capital Requirement: Smaller contract dimension requires much less margin, making it reasonably priced for particular person traders.
· Improved liquidity: A broader investor base enhances market depth and buying and selling volumes.
· Value Precision: The ten gm contract aligns carefully with retail pricing developments, providing higher correlation for jewelry patrons and sellers.
· Flexibility for Jewelers: Jewelers can effectively hedge stock at exact weights, decreasing publicity to unstable gold costs.
This contract successfully fills the hole between retail gold patrons {and professional} market individuals, providing a tailor-made answer for India’s gold-dominated funding panorama.
