Record delivery of 529 kg of gold at India’s MCX

January 19, 2009

Commodity Online
MUMBAI: Gold has become the largest traded commodity in India’s domestic futures market as a large number of traders are taking delivery of the yellow metals through the futures route.

Trading data from India’s largest commodity bourse, the Multi Commodity Exchange (MCX) show that traders took record delivery in gold contracts. Commodity market traders sought delivery of 529 kg of the January gold mini contracts at MCX.

The gold contracts delivery from MCX during December was just 49.6kg.

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A large volume of delivery in silver has also been reported at MCX. “Gold and silver are the two most actively traded commodities in the Indian futures market. So traders who hedge their price risk in the futures contracts of bullion are taking delivery. It is a healthy trend,” said Mumbai-based bullion dealer Ashok Hedge.

Hedge says the bullion industry in particular and futures market in India would greatly benefit if traders take delivery of commodities like gold and silver.

On the MCX, there has been demand for different variants of gold contracts. MCX has seven variants of gold and eight variants of silver futures contact. Analysts like Hedge say that India has a bright future in futures market if important and hot global commodities like gold and silver are up for delivery by traders and investors.

Last week, gold prices fell below the psychological 13,000 rupees mark in India, which is prompting many customers to re-start the gold shopping.

There has been lackluster business in gold thanks to less weddings during an inauspicious period from mid-December to mid-January. But traders are these easy taking stock of the yellow metal hoping that gold prices would zoom to at least 15,000 Rupees this year.

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