The commodity derivatives exchange MCX has started trading 10 gm gold futures contracts on today’s market due to the increased market uncertainty from Trump’s tariff policies which pushed gold prices to new record levels. The following section details the essential characteristics along with the main features of this newly created agreement. Within the recent trading period, gold futures achieved their highest value of Rs 90,284 per 10 gm whereas the retail market reflected a price of Rs 92,070 per 10 gm.
The 10 gm Gold Futures Contract contains the following essential characteristics.
- Trading Unit: 10 gm denomination
- Delivery Centre: Primary clearing house in Ahmedabad, with additional delivery locations in New Delhi and Mumbai
- This commodity requires 999 purity gold which bears a serial number from LBMA approved suppliers or MCX-authorized vendors and features a supplier’s quality certificate.
Funds Pay-In: Tender/expiry day +2 basis: 12 PM.
Delivery Pay-out: By 2 PM on tender/expiry day +2 basis
Funds payment deadline: 2 PM on a tender/expiry day +2 basis.
The government permits tamper-resistant units of 10gm gold units for packaging purposes.
The delivery-making charge amounts to Rs 300 per 10 gm on top of DDR rates.
Why Was The 10 Gm Gold Futures Contract Introduced?
The new 10 gm Gold futures contract emerged on MCX based on multiple platform purposes to enhance market accessibility and risk management solutions for investors according to Prithviraj Kothari who serves as Managing Director of RiddiSiddhi Bullions Limited (RSBL).
This 10 gm contract serves retail investors and small traders because it provides them an affordable alternative to traditional 1 kg or 100 gm contracts which they find financially challenging.
This contract enables precise price hedging among both retail users and businesses during times of rising gold markets because it offers greater flexibility in market transactions. MCX draws both small traders and retail investors into its markets through its decreased investment requirements.
The physical market demand for 10 gm gold units in India matches the contract’s specifications because these units function as main purchases for jewellery.
Advantages of the 10 gm Gold Futures Contract:
- Investors who participate in the contract benefit from lower margin costs because of the contract size’s minimal nature.
- The increased number of investors creates higher market liquidity through deepened trading volumes.
- The 10 gm contract delivers retail-pricing sensitivity to match better between buyers and sellers in the jewellery market.
- The precise weight hedging of Jewelers becomes quicker and more efficient thanks to the flexibility this contract provides when running their operations.
- This contract links retail gold buyers and professional market participants to offer personalized solutions for India’s gold investment market.
