First delivery day of MCX gold contracts with April expiry sees record 6-year high single day volume

The first delivery day of the MCX Gold contracts with April expiry, witnessed a record 6-year high single day delivery volume for gold 1 KG and gold mini 100 gram contracts together at 2035 kg amounting to Rs 887.40 crore.

Significantly, MCX saw delivery of 190 kg in the form of locally refined gold 100 gram bars in the MCX gold mini (100 gram) April contract. Notably, the April expiry marks the first delivery cycle for domestically refined gold from MCX empaneled domestic refiners.

In pursuit of the Atmanirbhar Bharat mission, MCX had earlier issued comprehensive MCX Good Delivery Norms for BIS Standard Gold/ Silver, paving the way for domestic bullion to be accepted as good delivery on the exchange platform. Prior to this, only bullion bars of London Bullion Market Association (LBMA) accredited refiners along with Emirates Gold were deliverable on the exchange.

Currently, two domestic refiners, M D Overseas Pvt. Ltd (Rudrapur, Uttrakhand) and M/s Kundan Care Products (Haridwar, Uttarakhand) – have been empaneled to the MCX good delivery list for Gold Mini (100 grams) derivative contracts.

“This is a significant development that facilitates expansion of organized bullion trade in the country. It also drive 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.

Further, local refiners will be able to derive benefits by partaking in the efficient transparent price discovery process.” said Mr P S Reddy, MD & CEO, MCX.

MCX Good Delivery Norms are kept at par with international standards, covering basic eligibility criteria, technical qualification audits, financial audits, continuous compliance requirements along with responsible sourcing guidelines that are aligned with the OECD. It also conforms to BIS India Good Delivery Standard.

MCX has witnessed a total delivery of more than 121 tons of gold and more than 3800 tons of silver since inception.