The National Commodity & Derivatives Exchange (NCDEX) will launch a gold futures contract, starting on Thursday.
“For the first time, consumers, jewellers, traders, banks and gold refiners will get a scientific and rigorous assessment of the daily premium for gold prevailing in the physical market to derive the final wholesale price,” the exchange said in a statement.
NCDEX has introduced an independent gold premium polling mechanism that will give the Indian market “an unbiased price benchmark”, it said. The gold premium benchmark will be used to arrive at the settlement price of the gold futures contract.
This premium — sometimes a discount — will reflect the logistical cost and market fundamentals affecting gold in India, NCDEX said. The daily premium or discount, in the dollars per troy ounce, will be based on an independent unbiased survey of banks, traders and dealers in various cities for a kilobar of fine gold quality.
“With the new gold futures contract, we hope to bring much-needed clarity into the way gold is priced in the country,” NCDEX MD and CEO Samir Shah said.