Gold rate converting formula

Factor You should take into consideration

A] Spot Gold per Oz in USD = 1136.50 Variable

B] Troy Ounces = 31.103477 Gram Constant

C] MCX Price Quotation = 10 Gram Constant

D] Current Currancy Rate = 1 USD = 44.4260 INR Variable

E] Import Duty per 10 Gram = 300 INR Constant

F] Days left to Expiry = 59 Days (for MCX Gold Future 25/06/2010) 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 = 36.2692572040692

Step 2 - Calculate Spot Gold Price as per MCX Quotation = (A/B)*C = 362.692572040692

Step 3 - Convert it into INR = (A/B)*C*D = 16,112.98

Step 4 - Add Import Duty = [(A/B)*C*D]+E = 16,412.98

Step 5 - Add Cost of Carry to Get Future Contract Price = [(A/B)*C*D]+E+(F*G) = 16,471.98

Step 6 - Round off it to nearest INR = 16,472


Thats it. I hope it don't confuse you and solve your problem.


Warm Regards,

-Pralhad

Prahllad,

Thanks!!
What will be the calculation for Silver.

rgds // vishal

Hi again Pralhad,

Please if you can let thread know about Silver too.

rgds // vishal