DBT Bureau
Pune, 8 March 2026
Gold has emerged as one of the strongest performing asset classes in recent years, delivering significant returns while several other investment avenues struggled to keep pace. Over the past couple of years, the precious metal has attracted increasing investor interest as global uncertainties and geopolitical tensions continue to influence financial markets.
In the Indian market, gold prices have witnessed a remarkable rally over the past year. On March 6, 2025, gold prices were trading around ₹85,300 per 10 grams. Over the following months, prices surged sharply and reached a high of approximately ₹1,80,000 before undergoing a phase of correction, representing a gain of nearly 111% within a year at the peak level.
The rally was followed by profit booking earlier this year. In February 2026, gold prices corrected sharply and touched a low near ₹1,36,000. However, the correction proved temporary as underlying demand remained strong. Prices have since rebounded and are currently trading around ₹1,60,000, reflecting a 17% recovery from the February lows.
Market participants attribute gold’s continued strength to a combination of geopolitical and structural factors. Global tensions involving the United States, Iran and Israel have continued to support safe-haven demand for gold. At the same time, central banks across the world have been increasing their gold reserves, while gold-backed exchange-traded funds have seen fresh inflows and record participation.
Portfolio diversification trends have also played an important role in supporting the metal. With equity markets facing volatility and periods of correction, investors have increasingly been shifting toward multi-asset portfolios that include gold as a hedge against uncertainty.
Against this backdrop of strong demand for gold investments, the National Stock Exchange is preparing to introduce a new product designed to widen access to gold trading. Known for its dominant presence in India’s financial markets and its advanced trading ecosystem, NSE is expanding its commodity derivatives offerings with the launch of a Gold 10-gram futures contract.
The exchange will introduce the new contract in its commodity derivatives segment beginning March 16, 2026, after receiving approval from the Securities and Exchange Board of India (SEBI). The product has been designed to align with domestic bullion trading practices while enabling broader participation from retail and smaller market participants.
The contract will trade under the symbol GOLD10G and will have a trading and delivery unit of 10 grams of 999 purity gold. Prices will be quoted on an ex-Ahmedabad basis, while the tick size has been set at ₹1 per 10 grams. The maximum permissible order size will be 10 kilograms, and the contracts will be listed in monthly series, expiring on the last calendar day of the contract month.
Trading will take place from 9:00 am to 11:30 pm or 11:55 pm, depending on US daylight saving adjustments. The contract will follow a compulsory delivery mechanism, with settlement routed through designated clearing facilities in Ahmedabad.
With gold prices witnessing sharp movements and increased volatility after the strong rally in recent years, the introduction of a smaller contract size allows investors to access gold in smaller denominations through the derivatives market. Market participants will be able to trade the contract, hedge their positions, or opt for delivery, making the product flexible for different types of investors.
The new contract is expected to attract interest particularly from investors who want exposure to gold but prefer smaller position sizes. By allowing participation through a 10-gram contract, the exchange is creating an additional avenue for investors seeking opportunities in gold while managing position size more efficiently.
As gold continues to remain in focus amid global uncertainty and portfolio diversification trends, the upcoming NSE Gold 10-gram futures contract could provide investors with another way to add gold exposure to their portfolios while participating in one of the strongest performing asset classes in recent years.
Source: Kedia Advisory
