Gold contract transactions crosses $24 million-level

Mumbai: Trading in gold contracts on BSE's India International Exchange (India INX) has hit the USD 24.15 million mark for the first time.

Trading in commodities derivatives including gold was launched at India INX in Gujarat's Gift City on April 13.

"With increase in volatility on Thursday the trading volume of India INX gold crossed the USD 24.15 million mark for the first time," India INX said in a statement today.

"The Federal Reserve raised US interest rates by 0.25 percent, in June FOMC (Federal Open Market Committee) meeting. The FOMC statement also said US inflationary pressures have eased a bit recently. After digesting the FOMC statement, the marketplace deemed this Fed meeting as more hawkish on US monetary policy," India INX said.

"The gold market started to erode right after the FOMC statement and due to increase in volatility the volumes of gold contracts at major exchanges shoots up including that of new entrant in the global market India INX gold contract," it added.

The India INX was launched with index and equity futures in January this year.

"Along with Index contracts, gold contract at India INX has gained momentum and attracted larger and wider participation as the impact cost of gold contracts at India INX is low as compared to other major global exchanges," the exchange said.

India INX is the first international exchange to become operational at the International Financial Service Centre at the Gift City in Ahmedabad.

As many as 84 trading members have taken approval from the SEZ authority to start trading on India INX.

The exchange has been one of the most advanced technology platforms with a turnaround time of 4 micro seconds. It operates 22 hours, five days a week, to allow global investors and NRIs to trade.