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Gold and silver rally fuels record participation on MCX


Gold and silver prices have hit record highs, with gold crossing $3,000 per ounce and silver exceeding ₹1 lakh per kilogram in India. The surge is driven by a weaker dollar, lower US inflation data, and global economic concerns. As a result, trading in gold and silver on the Multi Commodity Exchange (MCX) has increased significantly.

Rishi Nathany, Chief Business Officer of MCX, said that gold and silver are among the most traded commodities. “The bullion segment comprises around 15-20% of our overall volumes,” he noted.

Trading in futures and options has also grown sharply. Gold options trading hit record levels in late February. So far this fiscal year, futures volumes have risen by 37%, while options trading has jumped by 114%, leading to an overall 101% growth rate in trading activity.

Also Read | Gold prices hit all-time high for second time within a week

MCX is also planning to introduce new products. Nathany confirmed that there is a robust pipeline awaiting regulatory approvals. “As soon as the circulars are out, we will definitely bring them to the market,” he said.

Despite the appointment of a new CEO, the company remains dedicated to its core mission. “MCX continues to focus on growth, and that is what we plan to do,” Nathany emphasized, suggesting no significant shift in strategy.

Recent Securities and Exchange Board of India (SEBI) restrictions on F&O norms in equities have not affected MCX operations. Nathany clarified that since the regulations apply to equities, they have had no material impact on commodity trading volumes.

Also Read | Senco Gold eyes 20% topline growth in FY25 with 20 new stores

The growth in commodity trading is largely attributed to geopolitical uncertainties and global economic instability, driving the need for hedging.

MCX’s new technology platform has now stabilised, ensuring seamless operations.

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