Gold futures on India's Multi Commodity Exchange (MCX) rose nearly one per cent on Thursday, with the October contract trading at ₹1,50,511 per 10 grams. The gain of ₹1,475, or 0.99 per cent, came as traders opened fresh positions and spot demand stayed firm. The move followed a firmer tone in international markets, where gold futures in New York rose 0.59 per cent to $4,182.06 per ounce.
MCX contract at a glance
The October delivery contract changed hands at ₹1,50,511 per 10 grams, with turnover of 2,019 lots on the exchange. Analysts attributed the rise to fresh buying by market participants. In India, gold futures are quoted in rupees per 10 grams, a convention that reflects the domestic market's traditional jewellery and bar-trading practices.
What drives domestic gold prices
Domestic gold futures track international prices closely, but the two do not move in lockstep. The rupee-dollar exchange rate, import duties and local demand all play a part. When the rupee weakens against the dollar, rupee-denominated gold becomes more expensive even if the dollar price is unchanged. Similarly, seasonal buying around festivals and weddings can push local prices above the level implied by global markets.
Thursday's move appeared to reflect domestic buying as much as overseas strength. The rise was attributed to fresh positions and firm spot demand. For a real-time view of where prices stand, see the live gold price.
Key takeaways
- MCX October gold futures traded at ₹1,50,511 per 10 grams, up ₹1,475 or 0.99 per cent.
- Turnover on the exchange stood at 2,019 lots.
- Fresh positions and firm spot demand were cited as the immediate drivers.
- Internationally, gold futures in New York rose 0.59 per cent to $4,182.06 per ounce.
Common questions
What is the MCX?
The Multi Commodity Exchange of India is one of the country's leading commodity derivatives exchanges. Its gold futures contracts are settled in rupees and quoted per 10 grams.
Why do Indian gold prices differ from international prices?
Indian prices follow global benchmarks but also reflect the rupee-dollar exchange rate, import duties, and local supply and demand. These factors can push domestic prices above or below the international equivalent.
Thursday's session left gold futures above the ₹1.50 lakh mark, a level that has attracted attention in recent trading. With physical demand firm and global prices steady, the immediate tone remained positive, although trading can shift quickly on currency moves and macroeconomic data.