Commodity bourse NCDEX will launch gold futures contract tomorrow to provide a transparent and credible price benchmark to the domestic consumer. "We are a strong supporter of information transparency in the commodities markets and have pioneered highly innovative methods of price discovery. With newly launched gold futures contract, we hope to bring much-needed clarity into the way gold is priced in the country," NCDEX Managing Director and CEO Samir Shah said in a release issued here. This contract will be available for trade from May 21, 2015. After the launch of this contract, consumers, jewellers, traders, banks and gold refiners will get a scientific and rigorous assessment of the daily premium for gold prevailing in the physical market to derive the final wholesale price. To make it possible, NCDEX has introduced an independent gold premium polling mechanism that will give the Indian market an unbiased price benchmark for the first time. The gold premium benchmark will be used for arriving at the settlement price of the futures contract. NCDEX-polled Gold premium will connect the prevailing international price for gold with the wholesale value of gold kilobars in India. This premium - sometimes a discount - will reflect the logistical cost and market fundamentals affecting gold in India. The daily value of the premium or discount, in US dollars per troy ounce, will be based on an independent unbiased survey of banks, traders and dealers in various Indian cities for a kilobar of fine gold quality 995, available in Ahmedabad. It is a deliverable gold contract with the final settlement price calculated by taking into account the international price of gold, currency exchange rate, polled gold premium and taxes.

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