Noticed Gold Prices in MCX, is HIghly Deviated from Gold Prices is USD, why so???
Anyone with any insights on this?
MCX gold prices are influenced not just by international gold prices in USD, but also by USD/INR movement, import duty, taxes, local demand-supply, and MCX futures premiums.
So even if global gold prices stay flat, MCX gold can move differently due to currency and local market factors.
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SO this 5% diff is primarily due to the Import Duty stuff the Govt Did?
Yes, import duty and taxes are the main reasons for the price difference.
USD/INR movement and local premiums on MCX also add to it.
I don’t think it’s necessarily insider activity. Gold prices in MCX can sometimes look “mispriced” compared to international prices because MCX gold is influenced by multiple factors like USD/INR movement, import duties, taxes, local demand-supply, and futures premiums.
A lot of traders compare only the USD gold chart and forget that Indian gold prices also depend heavily on currency fluctuations and local market conditions. During high volatility, these gaps can become more noticeable.
At FGC Trading Experts, we believe traders should always understand the broader market structure before assuming manipulation or insider activity in commodities like gold. (https://fgctradingexperts.com/)