NCDEX Commodity Exchange has moved a proposal to the sector regulator FMC to launch a new gold contract focuses on a more transparent hedging platform for bullion importers.
NCDEX, which has pioneered a variety of agro-contracts, now plans to expand the bullion and metals. The National Commodity and Derivatives Exchange (NCDEX) Commodity exchange will begin trading in its new Gold Hedge futures contract from January 16.
The country’s largest Agri commodities futures bourse NCDEX, now have been spearheaded by non Agri commodities aggressively increasing its portfolio.
NCDEX from tomorrow is going to launch new Gold Hedge contract. NCDEX claims that starting from January 16, Gold hedge contract would be directly linked to the international market. It will mean higher prices impact on the international market.
NCDEX believe that the cost of gold in the the domestic market, about 25 per cent cheaper. The new Gold Hedge contract coverage is tied directly with international prices which eliminates of these distortions in the price. In such a scenario, monopolistic or big players will not have the chance to manipulate prices.