Gold Futures Pick Up On NMCE; MCX Begins Mock Trading

Mumbai, Nov 2: | Updated: Nov 3 2003, 05:30am hrs
Even as trading in gold futures has picked up on the Ahmedabad-based National Multi Commodity Exchange (NMCE), the Mumbai-based Multi-Commodity Exchange (MCX) has commenced mock trading in various commodity futures last week.

It was on October 3, NMCE had introduced the countrys first bullion futures. The cumulative volume in gold futures, since its launch, stands at Rs 9.7 crore while the active December gold contract witnessed a record volume of 762 lots valued at Rs 2.19 crore last Friday.

The December gold contract opened at Rs 5,760 and soared to Rs 5,800 before closing at Rs 5,785 a 10 gm, up by Rs 35 per 10 gm as compared to previous closing, due to sharp rise in global bullion prices and brisk buying from local investors.

On the first session, trading volume was recorded at 25 lots, which rose to 762 lots in just 20 sessions. The rising volume will give market much-needed liquidity to serve the very purpose of price discovery and hedging facility to manage price and exposure, said Kailash Gupta, managing director, NMCE. As bullion markets across the globe are becoming more and more volatile, a vibrant futures market will provide much-needed hedging mechanism to 40,000 crore plus Indian gold and jewellry market. It will also bring price discovery and rediscovery ensuring better price stability reducing price volatility related risk.