India’s gold derivatives market has surged to a daily turnover of ₹2.22 lakh crore in FY2025-26, reflecting a shift towards mainstream financial trading, increased investor demand, and evolving market standards.
India’s gold derivatives market has grown into a vast, highly liquid arena, with average daily turnover climbing to about ₹2.22 lakh crore in FY2025-26, according to Business Today’s report based on Multi Commodity Exchange data. The expansion marks a sharp rise from the previous financial year and underlines how gold trading in India has moved far beyond bullion counters and into mainstream financial markets.
MCX, which introduced gold derivatives in 2003, has broadened access through futures, options and a range of contract sizes, allowing retail investors, institutions and commercial users to trade according to their needs. In FY2025-26, average daily turnover in gold futures rose to ₹28,484 crore from ₹8,449 crore a year earlier, while volume more than doubled to 23 tonnes from 11 tonnes. Options trading grew even faster, with average daily notional turnover surging to ₹1,93,564 crore from ₹28,148 crore and volume jumping to 156 tonnes from 36 tonnes, the exchange data showed.
A key driver of the growth is the market’s increasing role in price discovery and hedging. According to the report, MCX gold prices are now used more widely as a domestic reference point in the physical market, helping jewellers, refiners, importers and bullion traders manage swings in gold prices. The availability of contracts in 1 kg, 100 gram, 10 gram, 8 gram and 1 gram formats has also widened participation, while the adoption of India Good Delivery standards for all gold futures contracts by July 2026 is intended to make the market more closely aligned with Indian physical supply chains.
The broader backdrop is one of stronger investment demand for gold in India. The World Gold Council said first-quarter 2026 demand rose 10% year on year to 151 tonnes, while the value of demand almost doubled to a record ₹2,275 billion as domestic prices surged. That environment has reinforced gold’s appeal not only as a store of value but also as a tradable financial asset. MCX said around 175 tonnes of gold have been delivered through its exchange mechanism since launch, and average open interest now stands at 43 tonnes, evidence of a market that is deepening as India seeks greater influence over regional gold pricing.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
