Multi Commodity Trade (MCX) will launch the nation’s first bullion index, Bulldex, on August 24 i.e. Monday. Bullions, viz. gold and silver, are at present traded as particular person commodities on the nation’s premier commodity alternate. With gold and silver as underlying, Bulldex could have a market lot dimension of 50 and be cash-settled.
“MCX iCOMDEX Bullion Index Futures contracts, expiring September, October and November, shall be obtainable for buying and selling with impact from August 24,” the commodity alternate had stated in a round final weekend.
Gold is taken into account as a forex of final resort and a secure haven in instances of financial and geo-political misery. It is usually extensively seen as a hedge in opposition to inflation. Alternatively, silver is an industrial commodity primarily utilized in manufacturing and industrial fabrication. It additionally finds functions in various areas akin to dentistry and pc motherboards.
The contract specs and buying and selling parameters of the contract shall be binding on all members of the alternate and constituents buying and selling by them, the alternate had added in its be aware.
Valuable metals, gold and silver are actively traded commodities on the Multi Commodity Trade. Within the bullion phase, MCX affords 1 kg gold, goldmini, gold guinea and gold petal contracts, in addition to silver, silver mini and silver micro contracts. It additionally has choices contracts on gold and gold mini.
The valuable metals are buying and selling round document highs. The rally, which started in March, has led to a multi-fold rise in every day volumes on the MCX and the introduction of bullion futures contract will add additional participation and depth to the bullion markets, say commodity analysts.