Rise in energy, base metals turnover largely offsets fall in bullion volumes on MCX during Apr-May

MUMBAI: : The fall in gold and silver futures turnover in the financial year through May 30 was because of double sided volatility, said Naveen Mathur, head of commodities at Angel Broking.

However, the rise in volumes of energy and base metals futures compensated for the fall in bullion futures, he added.Non agri futures such as gold, crude and base metals are primarily traded on listed commodity bourse MCX. Gold and silver futures turnover during April-May declined 20% at Rs 12.96 lakh crore from a year ago. Energy futures turnover, however, grew 42% at Rs 4.9 lakh crore and base metals futures volumes climbed 41% to Rs 5.6 lakh crore over the same period.

"The volatility in WTI crude oil and base metals was one-sided, on the bearish end. Traders thus built up shorts and gained from their fall in the past two months. However, gold and silver witnessed double sided volatility, making it tough to catch on to a trend, which is why trading interest declined partially on these counters," Mathur added.