Relation:GOLD vs USDINR
1) GOLD Comex Price constant: USDINR varies
At every One Rs depreciation or Appreciation in USDINR, Gold price at Indian exchange increase or Decrease by approx. 525rs.
Suppose USDINR is 53rs and it depreciates to 54rs in the mean while COMEX Price of Gold Remains constant at $1637.
Then Gold Price at Indian Exchange will Rise from 28310(@usdinr 53) to 28835(@usdinr 54)
Note: Vice versa of the strategy also holds good
2) GOLD Comex Price Varies: USDINR constant.
If USDINR is constant and gold price increases or Decrease by $1 than the price at Indian exchange will increase or decrease by Rs17.
Suppose USDINR is 53rs and Comex Price of Gold increases from $1637 to $1638.
Then Gold Price at Indian Exchange will Rise from 28310(@1637) to 28327(@1638)
3) GOLD Comex Price Varies: USDINR Varies
1Rs depreciation in USDINR and fall of $30 in Comex price of Gold nullify the effect on Indian exchange price of gold
Suppose USDINR is 53rs and it depreciated to 54 rs and meanwhile Comex Price of Gold fall from $1637 to $1607.
The price of Gold at Indian Exchange remains unchanged