The rising volatility in gold prices has prompted hedgers to use MCX futures platform, so much so that the open interest in gold on MCX breached 25 metric tonnes (MT) and was at 25.4 metric tonnes on June 25 when gold prices hit a 6-year high. This is the highest since July 29, 2013, when a commodity transaction tax was imposed. MCX bullion prices are seen as domestic price benchmarks and are used by the entire value-chain for pricing of their transactions. The list of hedgers on MCX includes importers, nominated agencies, bullion traders, small and large jewelers, including listed entities. While gold had hit a six-year high on Tuesday, its prices slipped more than 1 percent on Wednesday as the US Federal Reserve officials played down expectations of aggressive rate cuts, while investors locked in profits following a strong rally.
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