Variant 1: Lot Size
Gold Guinea is a gold futures contract traded on India's Multi Commodity Exchange (MCX). Each contract represents 8 grams of gold, allowing traders to benefit from fluctuations in gold prices without physical delivery.
Introduction
The Gold Guinea coin was minted in the UK between 1663 and 1813. It weighed about 8.3-8.4 grams and was originally valued at one English Pound. Its name comes from Guinea, Africa, which is the source of the gold used in these coins. In India, "Gold Guinea" refers to 8-gram gold coins with a purity of at least 0.995, commonly used for retail investment.
The demand for these coins in India is about 35 tonnes, with an expected growth rate of 40%. Gold is both a commodity and a monetary asset, known for its stability and high value, making it nearly indestructible. Global gold stocks are estimated at 1,63,000 tonnes, with 51% in jewellery, 18% in official reserves, and 17% in investments.
Factors that Impact the Gold Guinea Price
- Above-Ground Supply: The supply of gold from central bank sales, reclaimed scrap, and official gold loans plays a crucial role in determining prices. Shifts in official gold reserves and activities by central banks can significantly impact prices when such actions are publicised.
- Hedging by Producers: Gold producers' and miners' hedging activities can influence gold prices. This includes decisions to protect against price fluctuations affecting the available supply on the market.
- Currency Fluctuations: Specifically in India, gold prices are closely tied to international rates, but fluctuations in the INR-US Dollar exchange rate can cause variations in domestic prices, necessitating close monitoring.
- Investment and Market Comparisons: The attractiveness of gold as an investment is influenced by returns from other markets, including stocks, real estate, and commodities like crude oil. Comparative returns can shift investor preference, affecting demand and prices.
- Seasonal and Local Demand: In India, gold demand spikes during specific seasons, such as marriage seasons and harvests. Additionally, rural demand is impacted by factors like monsoon patterns, agricultural output, and the overall health of the rural economy, influencing domestic prices.
- Global Political Stability: Geopolitical tensions and uncertainties can drive investors toward gold as a safe-haven asset, leading to increased demand and higher prices. Any significant political unrest or instability can have a direct impact on gold prices.
Things to Consider Before Trading in Gold Guinea
Before diving into gold guinea trading, it's essential to consider several key factors to ensure informed decision-making:
- Market Volatility: Gold Guinea prices can be highly volatile, influenced by global demand, geopolitical events, and currency fluctuations. It's important to understand these factors to anticipate price trends and make well-considered trading decisions.
- Regulatory Environment: Government policies, such as trade tariffs, environmental regulations, and subsidies, significantly impact the Gold Guinea market. Staying abreast of current and upcoming regulations is essential for anticipating changes in market conditions.
- Macroeconomic Influences: Global economic factors, including the strength of the US dollar, interest rate changes, and major economic developments, directly affect gold prices. Additionally, the stability of the global economy and the performance of emerging markets are crucial factors to monitor.
- Investor Behaviour and Speculation: The Gold Guinea market is also shaped by investor sentiment and speculative trading. Understanding market psychology and the impact of speculation is key to managing risks and optimising the timing of your trades.
Gold Guinea Expiry Date Calendar 2024
Contract launch calendar for Gold Guinea for the year 2024
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Contract Launch Month
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Contract Expiry Month
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October 2023
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January 2024
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November 2023
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February 2024
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December 2023
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March 2024
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January 2024
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April 2024
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February 2024
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May 2024
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March 2024
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June 2024
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April 2024
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July 2024
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May 2024
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August 2024
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June 2024
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September 2024
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July 2024
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October 2024
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August 2024
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November 2024
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September 2024
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December 2024
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How to Trade in Gold Guinea via Angel One?
To trade gold guinea via Angel One, follow these steps:
- Open a Demat and Trading Account: Start by opening a Demat and Trading Account with Angel One.
- Activate the Commodity Segment: Once your Demat account is set up for trading, make sure to activate the commodity segment to start trading in gold guinea contracts and other commodities.
- Stay Informed: Monitor live gold guinea prices, market movements, and news that could impact the market by following exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange).
- Execute Your Trades: Use the Angel One trading platform to place your trades according to your strategy.
- Implement Risk Management: Protect your trades by using risk management tools such as stop-loss orders to minimise potential losses.
