The Multi Commodity Exchange (MCX) has introduced a 10 gm gold futures contract from April 1, 2025, allowing individual investors and small traders to participate in gold trading. At a time when gold prices are hitting all-time highs, this move provides a structured approach to trading in commodities.
Gold Futures Market Overview
At the time of writing, gold futures on MCX were trading at Rs 91,380 per 10 gm. The market had previously closed at Rs 90,717. The launch of the 10 gm contract corresponds with increased volatility in global markets, making it a suitable introduction.
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What Makes 10 Gram Gold Futures Contract Unique and Beneficial?
Smaller Contract Size: The 10 gm contract lowers the entry barrier by catering to individuals and smaller organisations, whereas standard contracts are usually 1 kg or 100 gm.
Aligns With Retail Demand: Since 10 gm gold units are popular in jewellery purchases, this contract closely reflects retail pricing trends.
Better Hedging Options: Investors and jewellers can use this contract to effectively hedge against price fluctuations.
Affordable Participation: Lower margin requirements make it easier for retail investors to enter the market and engage in gold trading.
Improved Liquidity: Increased participation is expected to boost trading volumes and market depth, creating a more dynamic market environment.
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Trading and Settlement Details
The 10 gm gold futures contract will have Ahmedabad as the primary delivery centre, with additional options in Mumbai and New Delhi. The contract requires 999 pure gold that comes from certified and licensed suppliers. The T+2 schedule for delivery transactions and fund settlement ensures efficient processing. Also, a making charge of Rs 300 per 10 gm will apply for delivery transactions.
The 10 gm gold futures contract offers expiry months for April 2025, May 2025, and June 2025, giving traders the flexibility to choose their preferred timelines.
