MCX gold in gold trading

MCX gold refers to the gold futures contracts traded on India’s Multi Commodity Exchange. Prices are quoted in Indian rupees, usually per 10 grams, and several contract sizes exist, from the standard 1-kilogram contract to smaller mini and petal contracts aimed at smaller traders.

How it applies to gold trading

The MCX price is not independent of global gold. It is effectively the international price converted at the USDINR exchange rate, plus import duty and other local costs, with a small premium or discount reflecting local demand. That means MCX gold can rise even when XAUUSD is flat, if the rupee weakens, or move sharply when import duty changes in a budget.

Indian traders comparing MCX and XAUUSD should note different trading hours, contract expiries and taxes, and that MCX contracts are regulated domestically while offshore CFD trading is subject to separate rules.

Worked example

Example (hypothetical numbers): XAUUSD is $4,000, USDINR is 84.00 and total duty and costs are 6%. The landed price per 10 grams is 4,000 × 84 ÷ 31.1035 × 10 × 1.06 = about ₹114,500. If the rupee weakens to 85.00 with gold unchanged, the MCX-equivalent price rises to about ₹115,870.

A common mistake

Treating an MCX move as a gold move without checking the rupee. Currency can be most of the change.

See also: Gram and 10-gram pricing, Import duty, Gold crosses, GC futures.

Frequently asked questions