GOLD-USDINR SOME FACTS

GOLD and USDINR Relation:
1) GOLD Comex Price constant: USDINR varies
At every One Rs depreciation or Appreciation in USDINR, Gold price at Indian exchange increase or
Decrease by approx. 525rs.

Illustration:
Suppose USDINR is 53rs and it depreciates to 54rs in the mean while COMEX Price of Gold Remains
constant at $1637.
Then Gold Price at Indian Exchange will Rise from 28310(@usdinr 53) to 28835(@usdinr 54)
Note: Vice versa of the strategy also holds good

2) GOLD Comex Price Varies: USDINR constant.

If USDINR is constant and gold price increases or Decrease by $1 than the price at Indian exchange will
increase or decrease by Rs17.

Illustration:
Suppose USDINR is 53rs and Comex Price of Gold increases from $1637 to $1638.
Then Gold Price at Indian Exchange will Rise from 28310(@1637) to 28327(@1638)

3) GOLD Comex Price Varies: USDINR Varies

1Rs depreciation in USDINR and fall of $30 in Comex price of Gold nullify the effect on Indian
exchange price of gold

Illustration:
Suppose USDINR is 53rs and it depreciated to 54 rs and meanwhile Comex Price of Gold fall from $1637
to $1607.
The price of Gold at Indian Exchange remains unchanged