Wednesday, 14th December 2005 (4042 views)

The ease at which Indian and Chinese investors can trade gold futures took a leap forward yesterday (December 13th) following separate moves in each country.

In India, the Forward Markets Commission (FMC) said it would allow both foreign institutional investors and mutual funds to begin trading bullion futures at national commodity exchanges.

The move is designed to facilitate India – the world's largest consumer of gold – in its quest to become a price setter on the global stage.

The FMC claims the development is also a coup for the underdog.

"Our decision to allow MFs to trade in commodity futures is to allow the small investor a chance to enter this arena," the FMC's chairman, S Sundareshan, was reported as saying by Sifi.

"Besides, the participation of MFs and FIIs will lend depth to the trade."

Meanwhile, in Shanghai, the country's first night gold trading session got underway in Shenzhen.

The national gold exchange's decision was sparked by a desire to enable the Chinese market to trade with New York and London.

 

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