MCX-COMEX parity

MCX-COMEX parity compares the price of a metal on India's Multi Commodity Exchange (MCX) against the same metal on the U.S. COMEX exchange. Because COMEX is quoted in U.S. dollars per troy ounce and MCX in rupees per 10 grams (gold) or per kilogram (silver), the two cannot be compared directly. The COMEX price is first divided by 31.1035 grams per troy ounce, multiplied by the local unit, and converted at the USDINR exchange rate.

For a bullion trader, parity is a way to read whether local prices are being driven by genuine global moves or by domestic factors such as a weaker rupee, customs duty, or festival demand. A persistent gap between MCX and converted COMEX can flag dislocation worth investigating.

Parity is a reference framework, not a profit signal. The gap reflects import costs, taxes, FX, and physical-market premiums, so it should be read alongside the duty assumptions and freshness of each price leg rather than treated as a guaranteed convergence trade.