The volume of bullion futures trading on the Multi Commodity Exchange (MCX) platform, the country’s leading commodity bourse, slumped by 41 per cent to Rs 1,68,503 crore in July as gold demand declined due to subdued price movement.
The volume of bullion futures had stood at Rs 2,85,700 crore in the corresponding period last year, according to the analysis of the turnover data collated by the Forward Markets Commission (FMC).
In July, only 756.59 tonnes of gold was traded on the MCX counter as compared to 1,539.79 tonnes during the same period last year. In value terms, gold futures were down by 44.66 per cent to Rs 1,11,086 crore last month from Rs 2,00,760 crore in the same period last year.
“Lack of direction in bullion prices led to a fall in volumes. Since June, gold prices were moving in a narrow range of Rs 14,500-15,000 per ten gram,” Cochin-based commodity brokerage JRG Wealth Research Head Harish G said.
As base metals and crude futures were extremely volatile, traders participated more in these commodities than bullion, he noted.
The analysis also showed a significant drop in silver futures in the previous month. The volume of silver trade slipped to 26,163 tonnes from 33,522 tonnes in the year-ago period. In value terms, it fell by 32 per cent to Rs 57,417 crore.