India’s Multi Commodity Exchange (MCX) will roll out a new gold futures contract from Tuesday, pending permission from the country’s Forward Markets Commission, the exchange confirmed to FastMarkets on Monday.
“Gold Global” will be an international price based contract converted into the rupee, exclusive of import, customs and sales duties and any local market premiums.
The contract size will be 200 grams compared with 1 kilogram in the main contract, which also differs from the Gold Global contract in that it derives its value from the landed price at Ahmedabad and includes a 10-percent import duty.
Gold Global will be settled against international prices converted into the rupee based upon the RBI Reference Rate on the date of expiry.
The contract has been designed for physical market participants in India who need to hedge against any adverse price movements in the international price of gold.
India vies with China as the world’s largest consumer of gold and together with China accounts for over well-over half of global consumption every year.
(Editing by Mark Shaw)
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