Gold edges higher amid demand; NSE introduces electronic gold receipts

Gold gains in futures trade. Representational Image

Gold prices saw a rise on Tuesday, supported by strong demand in the spot market. In futures trade, gold climbed by Rs 254 to reach Rs 1,53,100 per 10 grams on the Multi Commodity Exchange, reported PTI.

Analysts said that fresh buying by traders helped push prices higher. Globally too, gold showed strength, with futures in New York rising by 0.50 per cent to USD 4,544.62 per ounce.

Mumbai bullion rates

In Mumbai, bullion rates opened with silver at Rs 2,39,502 per kg, while standard gold (99.5 purity) was priced at Rs 1,46,966 per 10 grams and pure gold (99.9 purity) at Rs 1,47,557 per 10 grams, reported PTI.

NSE launches electronic gold system

In a major development, the National Stock Exchange of India has launched Electronic Gold Receipts (EGRs) from May 4, 2026. This new system aims to make gold trading more transparent and organised, and boost participation reported ANI.

What are EGR's?

EGRs are digital securities that represent physical gold stored safely in SEBI-approved vaults. Investors can buy, sell, or hold gold in electronic form, similar to shares.

What is the purpose of this system?

According to NSE, this initiative will connect the physical gold market with the financial system. Each EGR is backed by real gold, ensuring safety and trust.

The exchange also demonstrated how a 1,000-gram gold bar can be converted into a digital receipt, showing how physical gold can be easily turned into a tradable asset, reported ANI.

EGRs will allow investors to hold gold in digital form with assured quality. They also offer flexibility, as gold can be converted between physical and electronic formats. This is expected to boost participation from jewellers, traders and institutional investors, as reported by the news agency.

Expert opinion

Sriram Krishnan, Chief Business Development Officer at NSE, said, "The introduction of Electronic Gold Receipts marks a pivotal evolution in how India interacts with its most cherished asset."

He added that the move will allow investors to trade gold with greater transparency and confidence, while also improving access for smaller investors. "We believe that by creating a seamless, secure, and digital pathway for gold investment, we are positioning gold as a modern, integrated asset class within our capital markets, ultimately reducing dependence on fragmented benchmarks and fostering deeper financial inclusion," he said.

(With PTI and ANI inputs)