India’s Gold Derivatives Turnover Surpasses ₹2.2 Lakh Crore Daily

India’s gold market is increasingly using financial contracts called derivatives.

These contracts let people buy or sell gold at agreed prices or manage changes in its price.

The market now handles more than ₹2.2 lakh crore in trades on an average day.

Gold options are being traded much more heavily than gold futures.

Exchanges have also delivered about 175 tonnes of real gold since 2003.

Businesses such as jewellers, importers and refiners can use these contracts to reduce the risk of sudden price changes.

The Multi Commodity Exchange of India, or MCX, is becoming an important source of Indian gold prices.

The reports say the market needs more trading activity and greater participation from institutions.

Some restrictions still apply to banks and foreign portfolio investors in gold derivatives.