Gold, silver futures in near- and far- month trading at huge spreads

Two gold maturity contracts were trading at a spread of Rs 900 per 10 gram

In an unusual development, gold and silver futures in the near and far months are trading at a spread of between 2 per cent and 3 per cent, a historic high. 

In silver, very high spreads were seen last year in April-May; it had later moderated and has re-emerged. Traders and vyaj badla  (a financing mechanism on the BSE exchange, where money is provided for financing carry-forward deals) players in bullion were squeezed and were rolling over deliveries to the next contract.  

Gold’s August (maturing on 5th) contract is entering the delivery tender period from Thursday. Those not prepared to take delivery