MCX logs 6-year high single-day gold delivery

MCX logs 6-year high single-day gold delivery

MCX, the country’s largest commodity exchange, has logged a record six-year high single day delivery of 2,035 kg of gold worth ₹887 crore under its 1 kg and gold mini (100 grams) April futures contracts on Wednesday.

The highest delivery on the exchange comes when gold prices are on a free fall in last one month.

The exchange had advanced the 5-day staggered delivery period of the April contract to March 29 due to the forthcoming holidays starting with Good Friday.

Incidentally, the April contract expiry marks the first delivery cycle for domestically refined Gold. MCX saw delivery of 190 kg of locally refined Gold 100 gram bars in the MCX Gold Mini April contract.

From the level of ₹ 48,720 per 10 grams on February 1, gold for April delivery on MCX has fallen 11 per cent to ₹ 43,873 on Wednesday.

Ajay Kedia, Director, Kedia Commodities, said with the financial year coming to an end some of the jewellers closed their open position by delivering gold on the exchange.

Ishu Datwani, founder, Anmol Jewellers, said the second wave of Covid-19 and talks of a possible lockdown has cast shadow on buoyant demand expectation during Gudi Padwa and Akshaya Tritiya.

The spot premium had gone up by 40-50 per cent to about ₹5,000 a kg on hopes of revival in demand. Unfortunately, when prices are falling customers wait on sidelines for the prices to drop further, he added.

MCX had earlier issued comprehensive Good Delivery Norms for BIS Standard Gold/ Silver, paving the way for domestic bullion to be accepted as good delivery on the exchange platform.

Currently, two domestic refiners – MD Overseas (Rudrapur, Uttrakhand) and Kundan Care Products (Haridwar, Uttarakhand) – have been empanelled to the MCX good delivery list for Gold Mini (100 grams) derivative contracts.

PS Reddy, Managing Director & CEO, MCX, said the significant domestic refined gold delivered on the exchange will facilitate expansion of organised bullion trade in the country.

It also drives market efficiencies by reducing price disparities and further integrate exchange eco-system with domestic industry by bringing more locally available/ recycled gold of exchange grade, he said.

This article is auto-generated by Algorithm Source: www.thehindubusinessline.com

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