Multi Commodity Exchange of India, on Thursday, launched futures contracts in gold with a minimum size of eight grams.

The ‘Gold Guinea’ would have two contracts, July and August 2008, a circular said. Trading unit of the contract would be 8 grams and maximum order size would be 10 kg with tick size (minimum price movement) of Re 1 per eight grams. MCX has made delivery under these contracts compulsory.

MCX has notified the delivery centres at Ahmedabad, while the additional centres would be at New Delhi, Mumbai, Hyderabad, Bangalore, Chennai and Kolkata.

Whenever the daily price limit is hit, it shall be relaxed up to six per cent. Whenever such relaxation from the present daily price limit is made, margin of equivalent percentage shall be levied by the exchange.