In response to the soaring gold prices, expected to surpass $2700 per ounce this year amidst escalating geopolitical tensions in the Middle East, the Reserve Bank of India (RBI) announced a significant policy amendment. This move allows resident entities to diversify their hedging strategies against gold price volatility in overseas markets. Policy Update Effective immediately, residents can now utilize Over-the-Counter (OTC) derivatives in addition to derivatives traded on exchanges in the International Financial Services Centre (IFSC) for managing gold price risks. This expands the avenues for hedging gold exposure, offering residents enhanced flexibility in risk management….
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