The Multi Commodity Exchange (MCX) is India's largest commodity derivatives exchange and the primary reference point for gold pricing across the country. Every morning, when bullion associations in Delhi, Mumbai, Chennai, and other cities announce their daily gold rates, they are largely referencing the MCX Gold futures price from the previous evening's close and the morning's opening.
What Is a Futures Contract?
A gold futures contract on MCX is an agreement to buy or sell a specified quantity of gold at a predetermined price on a future date. The standard gold contract on MCX covers 1 kilogram of gold with a purity of 995 fineness or better. There are also Gold Mini (100 grams) and Gold Guinea (8 grams) contracts for smaller participants.
How the MCX Rate Becomes Your Jeweller's Rate
The MCX rate is quoted per 10 grams in Indian rupees. Local bullion associations take this figure, add their own adjustments for local taxes, transportation, and margins, and publish a city-specific rate. Jewellers then add their making charges and GST on top. This is why the rate you see on this website and the price quoted at a jeweller are never identical.
What Are Contango and Backwardation?
When the futures price is higher than the current spot price, the market is said to be in contango — the normal state for gold, reflecting the cost of carry (storage and financing). When spot prices are higher than futures, the market is in backwardation, which typically signals very strong immediate demand. Understanding these terms helps interpret whether current gold prices are likely to rise or fall in the near term.