Open interest in gold at 5-year high as traders expect prices to moderate

Even when the international gold prices moderated, the price in India remained high due to a fall in the rupee exchange rate and lower discounts

Open interest in gold futures has reached a five-and-a-half-year high on the Multi Commodity Exchange of India (MCX). Analysis of data shows bearish bets as the price of gold has remained steady at a high level. Some players are hedging bets in the options market too. The total market-wide open interest in gold futures is above 20,778 lots — the first time since July 2013.

Prices of the precious metal in the spot market are also on the rise. On Friday, at Mumbai’s Zaveri Bazaar, standard gold closed at Rs 32,350 per 10 gram, near its fresh 5-year high seen