someone plz explain this different price movement in MCX gold from international gold

#1
Hi All,

MCX gold september contract increased from 27696 to 27880 from 10.30 pm to 11.00 pm an increase of almost 0.7 %, similar was the price movement in oct and august contracts.
Whille, at the same time, there was hardly any movement in international gold price which was ranging from 1328.5 to 1329. and there was not much movement in EUR/USD either. I always believed MCX prices move very much in tandem with the international prices, subject to EUR/USD fluctuations, but i am not able to understand today's move in MCX.

Someone please explain why such thing could have occured.?
1. were MCX prics leading international prices ?
2. Is it because USD/INR is going to be gap up definitely , Is USD/INR or INR/USD traded at night(our time) somewhere in the world markets
3. I have always follwed international gold charts to trade MCX gold after 5 PM, but in case of today it didnt work, Do i have to follow anything else to trade gold ( i mean apart from international gold prices, any currency charts or something)
 

ashu1234

Well-Known Member
#2
Re: someone plz explain this different price movement in MCX gold from international

Hi All,

MCX gold september contract increased from 27696 to 27880 from 10.30 pm to 11.00 pm an increase of almost 0.7 %, similar was the price movement in oct and august contracts.
Whille, at the same time, there was hardly any movement in international gold price which was ranging from 1328.5 to 1329. and there was not much movement in EUR/USD either. I always believed MCX prices move very much in tandem with the international prices, subject to EUR/USD fluctuations, but i am not able to understand today's move in MCX.

Someone please explain why such thing could have occured.?
1. were MCX prics leading international prices ?
2. Is it because USD/INR is going to be gap up definitely , Is USD/INR or INR/USD traded at night(our time) somewhere in the world markets
3. I have always follwed international gold charts to trade MCX gold after 5 PM, but in case of today it didnt work, Do i have to follow anything else to trade gold ( i mean apart from international gold prices, any currency charts or something)
I have some explanation in the thread below, fxcommodities.
Yes usdinr trades at night, its expiry adjustment plus i guess there is some news which forced to gold to top above 28400(I may be wrong) and usd/inr is also stable. at comex it is stable below 1330.
 

ashu1234

Well-Known Member
#3
Re: someone plz explain this different price movement in MCX gold from international

Gold trading on MCX is pathetic if you follow international charts.
in last half hour the 400 rs move was due to delivery premium adjustment which is because of short supply of gold in physical market.
 
#4
Re: someone plz explain this different price movement in MCX gold from international

Gold trading on MCX is pathetic if you follow international charts.
in last half hour the 400 rs move was due to delivery premium adjustment which is because of short supply of gold in physical market.
Hi Ashu,

How do you trade commodities, I mean what charts you follow for your trading ? In general please explain where do you trade ( i mean which borker, which markets, and which charts you follow )
Just happned to see your thread, I see you following international charts . Have a doubt, Do you trade on MCX or some other markets ?
 
Last edited:

ashu1234

Well-Known Member
#5
Re: someone plz explain this different price movement in MCX gold from international

Hi Ashu,

How do you trade commodities, I mean what charts you follow for your trading ? In general please explain where do you trade ( i mean which borker, which markets, and which charts you follow )
Just happned to see your thread, I see you following international charts . Have a doubt, Do you trade on MCX or some other markets ?
My professional job requires me to restrict myself to commodities but I also trade sometimes on forex(international exchange) as and when opportunity arise. I go through all the charts mcx, usdinr and international plus use fundamental news flow to take my decisions.
 

neo1599

Active Member
#6
Re: someone plz explain this different price movement in MCX gold from international

Hi All,

MCX gold september contract increased from 27696 to 27880 from 10.30 pm to 11.00 pm an increase of almost 0.7 %, similar was the price movement in oct and august contracts.
Whille, at the same time, there was hardly any movement in international gold price which was ranging from 1328.5 to 1329. and there was not much movement in EUR/USD either. I always believed MCX prices move very much in tandem with the international prices, subject to EUR/USD fluctuations, but i am not able to understand today's move in MCX.

Someone please explain why such thing could have occured.?
1. were MCX prics leading international prices ?
2. Is it because USD/INR is going to be gap up definitely , Is USD/INR or INR/USD traded at night(our time) somewhere in the world markets
3. I have always follwed international gold charts to trade MCX gold after 5 PM, but in case of today it didnt work, Do i have to follow anything else to trade gold ( i mean apart from international gold prices, any currency charts or something)

Will try and answer your questions:

1- No, they were reflecting India specific Gold news i.e. the recent spate of measures taken by Govt. to stem import of Gold.

2- USD/INR is traded at a few other exchanges which are ahead and behind our open timing.

3- International Gold charts were useful till some time back, at the moment the India specific constraints/measures/demand-supply mismatch have taken centre stage and following Int. Gold Charts will not work in this situation. There is a formula to work out how to use the international levels and relate them to MCX Gold in current market try doing some reasearch and analysing and you might get to it.

As a last point:

INT Gold charts are still usable for bigger single direction move indicators. I would not suggest using them if you are new to the field.

Cheers
 
#7
Re: someone plz explain this different price movement in MCX gold from international

Will try and answer your questions:

1- No, they were reflecting India specific Gold news i.e. the recent spate of measures taken by Govt. to stem import of Gold.

2- USD/INR is traded at a few other exchanges which are ahead and behind our open timing.

3- International Gold charts were useful till some time back, at the moment the India specific constraints/measures/demand-supply mismatch have taken centre stage and following Int. Gold Charts will not work in this situation. There is a formula to work out how to use the international levels and relate them to MCX Gold in current market try doing some reasearch and analysing and you might get to it.

As a last point:

INT Gold charts are still usable for bigger single direction move indicators. I would not suggest using them if you are new to the field.

Cheers
Hi,
Want to clarify few more things regarding what you said

1. If MCX prices were reflecting local news, why did they move only in night i mean there wouldnt have been any news release at night.
2. Can you please guide me to few USD/INR charts that i can track at night , i mean the usdinr rates which are traded in other exchanges.
3. to trade gold, MCX charts are certainl not correct, because of the effect of usd/inr,they do not show correct SR levels, Which charts in this case shall i track if not internatinal charts. One alternative would be to trade with a US broker, but i do not have enough information on how to do that.
 
#8
Re: someone plz explain this different price movement in MCX gold from international

My professional job requires me to restrict myself to commodities but I also trade sometimes on forex(international exchange) as and when opportunity arise. I go through all the charts mcx, usdinr and international plus use fundamental news flow to take my decisions.

Hi,

which broker do you trade with when you are trading international markets.. Can you please tell me how one can trade on foreign markets. Also are there any usdinr charts that i can refer to after 5 pm .
 

neo1599

Active Member
#9
Re: someone plz explain this different price movement in MCX gold from international

Hi,
Want to clarify few more things regarding what you said

1. If MCX prices were reflecting local news, why did they move only in night i mean there wouldnt have been any news release at night.
2. Can you please guide me to few USD/INR charts that i can track at night , i mean the usdinr rates which are traded in other exchanges.
3. to trade gold, MCX charts are certainl not correct, because of the effect of usd/inr,they do not show correct SR levels, Which charts in this case shall i track if not internatinal charts. One alternative would be to trade with a US broker, but i do not have enough information on how to do that.

1- As for the specific time frame that you have mentioned, it was most likely short covering due to the RBI scheduled for the next day. Please note no one wants to have open positions(big positions) before central bank announcements. Specially in the case of Gold due to recent spate of news. News does not have to be on the wire for prices to move, announcements get built into the system before and then react as per actuals.

2- I am sorry but finding a reliable chart, is difficult. There are a lot of paid services.

3- Again charting given by brokers are ridiculous, almost a sure fire way to loose money. As regard the USD/INR factor, please do not consider when trading an MCX chart, it is already in Rs. and any fluctuation in price will reflect on the chart. Again paid services are the only option for Great charting for MCX.

Cheers
 

ashu1234

Well-Known Member
#10
Re: someone plz explain this different price movement in MCX gold from international

Will try and answer your questions:

1- No, they were reflecting India specific Gold news i.e. the recent spate of measures taken by Govt. to stem import of Gold.

2- USD/INR is traded at a few other exchanges which are ahead and behind our open timing.

3- International Gold charts were useful till some time back, at the moment the India specific constraints/measures/demand-supply mismatch have taken centre stage and following Int. Gold Charts will not work in this situation. There is a formula to work out how to use the international levels and relate them to MCX Gold in current market try doing some reasearch and analysing and you might get to it.

As a last point:

INT Gold charts are still usable for bigger single direction move indicators. I would not suggest using them if you are new to the field.

Cheers
Hi,
Gold prices spiked to 28400+ from 11-11.30, btw no announcements were there, it was out of proportion, what I can say is that Aug gold contract will go for delivery mode in 2 days and price shot up due to supply squeeze in physical market, how mcx prices priced in that surge is out of my understanding.
 

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