What could be the liquidity-wise best instrument to trade gold in India

[pancham]

Please suggest the trading instruments with higher liquidity for GOLD in India.

Where could we get related updates on regular basis.

[nithin]

If you are looking at trading gold actively, then gold futures which trade on MCX is the most popular.You can trade on MCX until almost midnight.

If you are looking at investing into Gold, then Gold BeES an ETF which trades on NSE is the most liquid. Gold ETF’s will have a tracking error and may not corelate 1:1 to underlying gold price.

[bitte97]

Hi Nithin
Are both options available to trade/invest on Zerodha? Secondly does GOLD BeES ETF follow the regular NSE market timing? Also does the ETF’s still have a tracking error after almost 7 years of technological advancement?

[siva]

@bitte97

Are both options available to trade/invest on Zerodha? Secondly does GOLD BeES ETF follow the regular NSE market timing?

Yes.

@bitte97

Also does the ETF’s still have a tracking error after almost 7 years of technological advancement?

There is no enough data on this but yeah for sure it might have reduced.