MCX has launched GOLD GLOBAL contracts.
Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. The contract has been designed keeping in mind the requirements of refiners, exporters, jewellers, including larger bullion physical market participants, involved in import of gold bars and re-export of jewellery. These stakeholders having significant exposure to international gold prices, need to effectively hedge against any adverse movement in prices. The existing Gold futures contracts traded on MCX have been providing an efficient hedging mechanism to the market participants exposed to changes in Gold landed prices, which mirrors the Indian spot market perfectly.
However, a category of physical participants including Indian refiners, exporters, and jewellers are looking for contracts with less international basis risk and protection against adverse international price movements and this contract will cater to their needs perfectly.
Read MCX press release document on this
Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. The contract has been designed keeping in mind the requirements of refiners, exporters, jewellers, including larger bullion physical market participants, involved in import of gold bars and re-export of jewellery. These stakeholders having significant exposure to international gold prices, need to effectively hedge against any adverse movement in prices. The existing Gold futures contracts traded on MCX have been providing an efficient hedging mechanism to the market participants exposed to changes in Gold landed prices, which mirrors the Indian spot market perfectly.
However, a category of physical participants including Indian refiners, exporters, and jewellers are looking for contracts with less international basis risk and protection against adverse international price movements and this contract will cater to their needs perfectly.
Read MCX press release document on this
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