Fair Value
MCX-COMEX parity is the relationship between the local MCX gold or silver futures price and the equivalent COMEX international price once converted into rupees per local unit. It shows whether the Indian contract is trading rich or cheap to its global benchmark.
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.
Common questions
MCX-COMEX parity is the comparison between the price of gold or silver on India's MCX exchange and the same metal on the U.S. COMEX exchange, once the dollar-quoted COMEX price is converted into rupees per local unit. It shows whether the Indian contract is trading rich (at a premium) or cheap (at a discount) to its global benchmark. On Bullion Brains, the Fair Value Tracker computes this converted-COMEX reference live so the MCX-COMEX gap can be read as a number rather than estimated by eye.
Because COMEX gold is quoted in U.S. dollars per troy ounce and MCX gold in rupees per 10 grams, you convert before comparing: converted price (₹/10g) = COMEX price ($/oz) ÷ 31.1035 × 10 × USDINR rate. For example, at a COMEX price of $3,300/oz and a USDINR rate of 86, the converted reference is 3300 ÷ 31.1035 × 10 × 86 ≈ ₹91,240 per 10 grams. Silver follows the same steps but scales to rupees per kilogram. This converted figure is the duty-exclusive parity leg; the actual MCX price sits above it by import duty, taxes, and physical premiums.
The two prices differ mainly because Indian gold is imported and priced in rupees. Three factors drive the gap: the USDINR exchange rate (a weaker rupee lifts the local price even when COMEX is unchanged), customs duty and taxes on imported metal, and local physical-market premiums or discounts tied to festival and wedding demand. A persistent gap beyond these known costs can flag a dislocation, which is why Bullion Brains tracks the converted-COMEX reference against the live MCX price rather than reading either leg in isolation.
See also
Educational reference only. Definitions describe how traders use these concepts and are not investment advice or a recommendation to trade.
