MCX Gold

• Gold (Chemical Symbol-Au) is primarily a monetary asset and partly a commodity.
• Gold is the world's oldest international currency.
• Gold is an important element of global monetary reserves.
• With regards to investment value, more than two-thirds of gold's total accumulated holdings is with central banks' reserves, private players, and held in the form of high-karat jewellery.
• Less than one-third of gold's total accumulated holdings are used as “commodity” for jewellery in the western markets and industry.

The gold market is highly liquid. Gold held by central banks and other major institutions and in the 

form of retail jewellery is reinvested in the market.

Effective diversification during “stress” periods: Traditional methods of portfolio diversification often fail when they are most needed, that is during financial “stress” (instability). On these occasions, the correlations and volatilities of return for most asset classes (including traditional diversifies  such as bonds and alternative assets) increase, thus reducing the intended “cushioning” effect of a diversified portfolio.

Gold In India

India is the largest market for gold jewellery in the world and a key driver of the global gold demand. The 

domestic drivers of gold demand are largely independent of outside forces. Indian households hold the 

largest stock of gold in the world. Two thirds of the Indian demand for gold comes from the rural parts of the 

country. In 2011, gold's role as an inflation hedge bolstered its appeal in India. The nation witnessed jewellery

and investment demand of 933.4 MT. The nation was by far the largest single investment market in 2011

Factors Influencing/Impacting the MCX Gold

• Above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans.
• Hedging interest of producers/miners.
• World macroeconomic factors such as the US Dollar and interest rate, and economic events.
• Commodity-specific events such as the construction of new production facilities or processes, unexpected 
  mine or plant closures, or industry restructuring, all affect metal prices.
•  In India, gold demand is also determined to a large extent by its price level and volatility.

MCX Gold

Types/Forms of MCX Gold Contracts

MCX Gold Regular/Mega    -  1 KG

MCX Gold Mini                   -  100 gms

MCX Gold Guinea              -  8 gms

MCX Gold Petal                 - 1 gm

MCX Gold Regular/Mega    

Contract Basis                         : Bi-Monthly(All Month Contracts Available)

No of Contracts of a year        :6

Price Quotation(Quoted Price)  : 10 gms

Lot size                                    : 100

Margin Percentage                    :4% of lot value

Margin/Investment Required to

Trade Brent Crude Oil               : Approx.Rs.1,20,000-2,00,000(Subject to change as per MCX Exchange)

Tick Size                                  : Rs.1

Tick Value                                : Rs.100 Per Tick

Value for One Point/Price

Variation(Up/Down)                  : Rs.100

Trading period                         : Monday through Saturday

Trading session/Timings           : Monday to Friday: 10.00 a.m. to 11.30 p.m.

                                                 Saturday: 10.00 a.m. to 2.00 p.m.