MCX sees delivery of 190 kilos locally refined gold bars for first time

MUMBAI: In a first of sorts, stock exchange MCX has facilitated a delivery intention of 190 kilos of locally refined 100 gm gold bars for the April 5 expiry contract. On the first day of delivery commencing on March 29, 604.6 kilos of gold mini bars were tendered for delivery to be given or taken.

The stock exchange also witnessed a record 6 year high single day delivery volume for gold 1 kilo and gold mini 100 gm at 2035 kilos, it said in a press release.

The exchange said two domestic refiners — MD Overseas and Kundan Care Products — have been empaneled to the

good delivery list for gold 100 gm derivatives contracts.

Market constituents like Naveen Mathur, director, Anand Rathi Share and Stock Brokers, attributed the “robust” delivery intention volumes to the high premium that MCX traded at to the spot market.

MCX April futures contract traded at around Rs 700 per 10 gm premium to the spot price earlier in March. Those who had gold bars lying in the MCX accredited vaults simply sold at the high rate. When the price fell near toward the month end, they gained by having locked in at the higher price, Mathur explained.

“While a major chunk of delivery is done by bullion traders and refiners, HNI clients too used the MCX platform to make delivery,” added Mathur.