Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Comex Gold and USDINR movement and Impact on Domestic Gold rates

21 sec read

Here is a simple example from Mr Jayant Manglik (Religare Online) explaining how the impact of Change in Comex Gold Price impacts domestic Gold Rates (if USDINR rates are assumed to be constant). He also discuss how USDINR movement affects MCX Gold rates keeping Comex Gold rates as constant. Useful video must for the begineers to understand the dynamics of the commodity market.

Effect of Comex Gold Rate on Domestic Gold Prices

httpv://www.youtube.com/watch?v=3nA00bu6rM8

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Effect of USDINR Exchange Rate on Domestic Gold Prices

httpv://www.youtube.com/watch?v=ltcHI50HLmg

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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2 Replies to “Comex Gold and USDINR movement and Impact on Domestic…”

  1. There is a usual time lag between the effects which is totally ignored by this hypothesis
    An example using Crude oil, Dollar and Indian crude oil price:
    A drop in International crude prices will in turn increases the value of dollar after a significant adjustment of supply and demand So when Indians are importing crude oil we can’t do it by INR we need to convert it into USD and then buy the Crude oil in the International market So when making conclusions from this statement it is very much clear that whatever drop in oil prices will not benefit the Indian customers for a long time period but only temporary due to rise in the USD value which will offset the fall in oil prices

    Same applies to gold: Fall in International gold prices doesn’t necessarily mean a fall in Indian gold prices, For temporary it may seems so due to economic discrepancies like inventory clearings etc but overall the value is adjusted to return of the equilibrium
    Falling gold prices = Raising dollar value = Increase in USD/INR rate= Stable Indian gold prices due to falls are offended by rising dollar value
    There may be temporary distortions which may provide an arbitrage opportunity for a Speculator

  2. Its impact on the domestic gold rate is important to understand. Thanks for sharing it. This will benefits me as well as all other readers too.

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