Traders on gold futures were quick to seize an arbitrage opportunity created by hedgers of the yellow metal.
A rollover of gold futures trader positions from April to June and August was happening for the past few days, with April contract expiry due on the fifth of next-month. The trade happened on commodity bourse MCX.
As market participants closed out their buy-sell positions for gold futures in April and created fresh ones in the June and August contracts, the spread between the two months (August and June) dipped to a low of Rs 28 per 10 gm intraday on Wednesday. The spread (premium) between the next and the near-month contract is normally Rs 150-170.
