Formula for Converting Comex Gold price into MCX Gold price
Factor You should take into consideration
A] Spot Gold in USD = 1569.62( Just ass example) Variable
B] Troy Ounces = 31.103477 Gram Constant
C] MCX Price Quotation = 10 Gram Constant
D] Current Currancy Rate = 1 USD = 44.20 INR Variable
E] Import Duty per 10 Gram = 400 INR Constant
F] Days left to Expiry = 10 Days(for MCX Gold Future contract expiring 0/0/11) Variable
G] Cost of Carry per Day for 10 Gram = 1 INR Constant It worked most of time for me. But you can change it as per market and your expectation.
Fair Price formula for 10 Gram in INR
Step 1 – Calculate Spot Gold Price (USD) in Gram = A/B = 50.47
Step 2 – Calculate Spot Gold Price as per MCX Quotation = (A/B)*C = 504.70
Step 3 – Convert it into INR = (A/B)*C*D =22307
Step 4 – Add Import Duty = [(A/B)*C*D]+E = 22707
Step 5 – Add Cost of Carry to Get Future Contract Price = [(A/B)*C*D]+E+(F*G) = 22741
Step 6 – Always Round off it to nearest INR = 22741
