{"id":75483,"date":"2025-10-29T14:59:51","date_gmt":"2025-10-29T09:29:51","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=markets&#038;p=75483"},"modified":"2025-11-03T21:57:36","modified_gmt":"2025-11-03T16:27:36","slug":"gold-part-2","status":"publish","type":"markets","link":"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/gold-part-2\/","title":{"rendered":"Gold-Part 2"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"75483\" class=\"elementor elementor-75483\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\" data-id=\"23ba90b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 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href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/impact-of-events-and-interest-rate-parity\/\">Events and Interest Rates Parity<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/usd-inr-pair\/\">USD\/INR Pair<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/understanding-futures-calendar\/\">Futures Calendar<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/eur-gbp-and-jpy\/\">EUR, GBP and JPY<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/an-overview-of-commodities-market\/\">Commodities Market <\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/gold-part-1\/\">Gold Part-1<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/gold-part-2\/\">Gold -Part 2<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/silver\/\">Silver<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/crude-oil\/\">Crude Oil<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/crude-oil-part-2\/\">Crude Oil -Part 2<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/crude-oil-part-3\/\">Crude Oil-Part 3<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/copper-and-aluminium\/\">Copper and Aluminium<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/lead-and-nickel\/\">Lead and Nickel<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/cardamom-and-mentha-oil\/\">Cardamom and Mentha Oil<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/natural-gas\/\">Natural Gas<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/commodity-options\/\">Commodity Options<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/cross-currency-pairs\/\">Cross Currency Pairs<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/government-securities\/\">Government Securities<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/electricity-derivatives\/\">Electricity Derivatives<\/a><\/li><\/ul><\/div><\/div><div class=\"chapters_toggle\" title=\"chapters\"><a title=\"chapters\" href=\"#\" id=\"open_chapters\"><span>View Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\"><\/i><\/a><a title=\"chapters\" href=\"#\" id=\"close_chapters\" style=\"display:none;\"><span>Hide Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\"><\/i><\/a><\/div>\t<script>\n\t\tjQuery(document).ready(function(){\n\t\t\tjQuery('.chapters_toggle 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class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-90f6d06 market_content_tabs elementor-widget elementor-widget-eael-adv-tabs\" data-id=\"90f6d06\" data-element_type=\"widget\" data-widget_type=\"eael-adv-tabs.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t        <div data-scroll-on-click=\"no\" data-scroll-speed=\"300\" id=\"eael-advance-tabs-90f6d06\" class=\"eael-advance-tabs eael-tabs-horizontal eael-tab-auto-active \" data-tabid=\"90f6d06\">\n            <div class=\"eael-tabs-nav\">\n                <ul class=\"eael-tab-inline-icon\" role=\"tablist\">\n                                            <li id=\"study\" class=\"active-default eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"true\" data-tab=\"1\" role=\"tab\" tabindex=\"0\" aria-controls=\"study-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-edit\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Study<\/span>                            \n                                                    <\/li>\n                                            <li id=\"slides\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"2\" role=\"tab\" tabindex=\"-1\" aria-controls=\"slides-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"fas fa-book-open\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Slides<\/span>                            \n                                                    <\/li>\n                                            <li id=\"videos\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"videos-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-eye\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Videos<\/span>                            \n                                                    <\/li>\n                                    <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"study-tab\" class=\"clearfix eael-tab-content-item active-default\" data-title-link=\"study-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='The-London-Fix\u2013How-Global-and-Domestic-Gold-Prices-Are-Set' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><strong>9.1 <\/strong><strong><b>The London Fix \u2013 How Global and Domestic Gold Prices Are Set<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Exams-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Exams-rafiki.svg\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Isha, I\u2019ve always wondered\u2014who actually decides the price of gold each day?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0That\u2019s a great question, Varun. Globally, it\u2019s done through something called the London Fix, and in India, we have our own system.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0London Fix? Sounds fancy. Is it still relevant?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0It\u2019s more of a tradition now, but yes\u2014it still sets the global benchmark. And in India, prices are set based on dealer quotes and import costs.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Interesting. So both global and local factors shape the price we see?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. Let me walk you through how both systems work\u2014it\u2019s actually quite fascinating.<\/p>\r\n<p><strong>Overview<\/strong><\/p>\r\n<p>Before diving deeper into gold price dynamics, it&#8217;s worth exploring how spot prices are determined internationally and in India. While these mechanisms have limited direct relevance to trading gold futures on MCX, they offer valuable context and historical insight into how benchmark prices are established.<\/p>\r\n<p><strong>International Price Discovery: The London Fix<\/strong><\/p>\r\n<p>Globally, the benchmark price of gold is set in London through a process known as the London Fix, conducted twice daily:<\/p>\r\n<ul>\r\n<li>AM Fix: 10:30 AM London time<\/li>\r\n<li>PM Fix: 3:00 PM London time<\/li>\r\n<\/ul>\r\n<p>This process is coordinated by London\u2019s leading bullion banks, originally facilitated by N.M. Rothschild &amp; Sons. Today, the procedure is overseen by the London Bullion Market Association (LBMA).<\/p>\r\n<p><strong>How It Works<\/strong><\/p>\r\n<ul>\r\n<li>Around 10\u201311 major banks participate, including names like JP Morgan, Standard Chartered, ScotiaMocatta, and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.<\/li>\r\n<li>At the scheduled time, dealers from these banks join a secure conference call.<\/li>\r\n<li>Each participant submits buy and sell orders based on client demand and market conditions.<\/li>\r\n<li>An average price is calculated from these bids and offers, which becomes the official gold price for that session.<\/li>\r\n<li>The process typically lasts 10\u201315 minutes and is repeated in the afternoon.<\/li>\r\n<\/ul>\r\n<p>Though the London Fix closely mirrors actual trading prices in global markets, many view it as a symbolic tradition\u2014a legacy mechanism that continues more for consistency than necessity.<\/p>\r\n<p><strong>Domestic Price Discovery: The Indian Bullion Mechanism<\/strong><\/p>\r\n<p>India, being one of the world\u2019s largest consumers of gold, follows a more localized approach to price setting.<\/p>\r\n<p><strong>Key Steps<\/strong><\/p>\r\n<ol>\r\n<li>Designated banks import gold into India.<\/li>\r\n<li>These banks distribute gold to bullion dealers, adding import duties and handling charges.<\/li>\r\n<li>The Indian Bullion and Jewellers Association (IBJA) collects buy\/sell quotes from its dealer network.<\/li>\r\n<li>These quotes are averaged to arrive at a daily reference price, which is then circulated to jewellers and traders.<\/li>\r\n<\/ol><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Understanding Gold Price Disparity\u2013CME-vs-MCX' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><strong>9.2\u00a0 <\/strong><b><\/b><strong><b>Understanding Gold Price Disparity \u2013 CME vs. MCX<\/b><\/strong><\/h2>\r\n<h2 style=\"text-align: left\">\u00a0<\/h2>\r\n<h3 style=\"text-align: left\"><strong><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/New-entries-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/New-entries-rafiki.svg\" \/><\/a><\/strong><\/h3>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Isha, now I\u2019m curious\u2014if the global price is set in London, shouldn\u2019t gold prices be the same everywhere?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0That\u2019s a common thought, but not quite. Gold prices can vary a lot between global exchanges like CME and domestic ones like MCX.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Really? I thought any difference would mean an easy arbitrage trade.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0It\u2019s not that simple. India adds import duties, taxes, and other costs to the global price. That\u2019s why MCX prices are usually higher.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Ah, so the gap is because of how gold lands in India?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. Let me show you how the price difference actually works\u2014it\u2019s a great example of how global and local markets connect.<\/p>\r\n<p>Gold is a globally traded commodity, and many traders assume that its price should be uniform across international exchanges. This leads to a common misconception: if gold futures are priced differently on the Chicago Mercantile Exchange (CME) and the Multi Commodity Exchange (MCX), there must be an arbitrage opportunity.<\/p>\r\n<p>However, this assumption overlooks key structural differences in how gold is priced and traded across regions. Let\u2019s break it down.<\/p>\r\n<h3><strong><b>Why Prices Differ Across Exchanges<\/b><\/strong><\/h3>\r\n<p>At first glance, it seems logical to expect parity. For example, if 10 grams of 995 purity gold is quoted at $430 on CME, then the MCX price for the same quantity and purity should also hover around $430 (converted to INR). But in reality, prices on MCX and CME often diverge significantly.<\/p>\r\n<p>To understand why, we need to examine how gold\u2019s spot price evolves in India, and how that influences futures pricing.<\/p>\r\n<h3><strong><b>Step 1: International Spot Price Conversion<\/b><\/strong><\/h3>\r\n<p>Gold is quoted internationally in troy ounces, where:<\/p>\r\n<ul>\r\n<li>1 troy ounce = 31.1035 grams<\/li>\r\n<\/ul>\r\n<p>As of October 20, 2025, the spot price of gold in the US market is approximately:<\/p>\r\n<ul>\r\n<li>$4,238.58 per troy ounce<\/li>\r\n<\/ul>\r\n<p>To convert this to 10 grams:<\/p>\r\n<p>Using the current USD to INR exchange rate of \u20b987.97 per $1:<\/p>\r\n<p>This is the theoretical base price of 10 grams of gold in India, assuming no additional costs.<\/p>\r\n<h3><strong><b>Step 2: Import Costs and Duties<\/b><\/strong><\/h3>\r\n<p>India is a net importer of gold, and the actual landed price includes several charges:<\/p>\r\n<ul>\r\n<li>CIF (Cost, Insurance, Freight)<\/li>\r\n<li>Customs duty (currently around 15%)<\/li>\r\n<li>Agriculture Infrastructure and Development Cess (AIDC)<\/li>\r\n<li>Bank handling charges and premiums<\/li>\r\n<\/ul>\r\n<p>These costs can add 5\u201310% or more to the base price. For example, if the international price is \u20b91,19,899 per 10 grams, the effective domestic spot price may rise to:<\/p>\r\n<p>This explains the disparity of \u20b99,500\u2013\u20b910,000 between global and Indian spot prices.<\/p>\r\n<h3><strong><b>Step 3: Futures Pricing Formula<\/b><\/strong><\/h3>\r\n<p>Futures prices are derived from spot prices using the formula:<\/p>\r\n<p><strong><b>F = S \u00d7 e^(r \u00d7 t)<\/b><\/strong><\/p>\r\n<p>Where:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>F<\/b><\/strong>= Futures price<\/li>\r\n<li><b><\/b><strong><b>S<\/b><\/strong>= Spot price<\/li>\r\n<li><b><\/b><strong><b>r<\/b><\/strong>= Risk-free interest rate<\/li>\r\n<li><b><\/b><strong><b>t<\/b><\/strong>= Time to expiry<\/li>\r\n<li><b><\/b><strong><b>e<\/b><\/strong>= Exponential constant (~2.718)<\/li>\r\n<\/ul>\r\n<p>In the US, futures are priced off the lower spot price of $4,238.58 per ounce. In India, futures are priced off the higher landed spot price, which includes import duties and taxes.<\/p>\r\n<p>As of October 20, 2025, the MCX Gold December futures are trading at:<\/p>\r\n<ul>\r\n<li>\u20b91,32,485 per 10 grams<\/li>\r\n<\/ul>\r\n<p>This is consistent with the inflated domestic spot price and explains why CME and MCX futures prices differ significantly.<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='What-Drives-the-Price-of-Gold?' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.3 <\/strong><strong><b>What Drives the Price of Gold?<\/b><\/strong><\/h2>\r\n<p style=\"text-align: left\"><em><span style=\"color: #000080\"><strong><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Search-engines-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Search-engines-bro.svg\" \/><\/a><\/strong><\/span><\/em><\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0So MCX gold prices are higher because of import duties and taxes. Makes sense now.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. But that\u2019s just the pricing structure. The real question is\u2014what actually moves gold prices up or down?<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0You mean apart from supply and demand?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Yes, much more than that. Gold reacts to global events, inflation, interest rates\u2014even currency movements like USD-INR.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Sounds like gold is more emotional than I thought.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0You\u2019re not wrong. Let\u2019s look at the key factors that drive gold prices\u2014it\u2019s a fascinating mix of fear, finance, and fundamentals.<\/p>\r\n<p>Gold has long held a reputation as a safe haven asset, especially during periods of economic or geopolitical uncertainty. When markets turn volatile, investors across the globe instinctively shift toward gold\u2014not for short-term gains, but to preserve wealth.<\/p>\r\n<p>Here\u2019s a line chart showing the historical rise in gold prices from 1970 to 2025. It highlights key milestones:<\/p>\r\n<ul>\r\n<li>Gold was around <strong><b>$35\/oz in 1970<\/b><\/strong><\/li>\r\n<li>Surged to <strong><b>$615\/oz by 1980<\/b><\/strong><\/li>\r\n<li>Rose steadily to <strong><b>$2,000\/oz in 2025<\/b><\/strong><\/li>\r\n<\/ul>\r\n<ol>\r\n<li><strong><b> Gold as a Safe Haven During Global Events<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">History shows that gold prices tend to rise in response to major global disruptions. A recent example is the Russia\u2013Ukraine conflict, which escalated in early 2022. In the weeks following the invasion, gold surged from around $1,800 to over $2,050 per ounce, as investors sought refuge from geopolitical risk and inflationary pressures.<\/p>\r\n<p style=\"padding-left: 40px\">Other events that have historically triggered gold rallies include:<\/p>\r\n<ul>\r\n<li>The COVID-19 pandemic (2020)<\/li>\r\n<li>The US banking crisis (March 2023)<\/li>\r\n<li>The Middle East tensions (ongoing)<\/li>\r\n<li>The Lehman Brothers collapse (2008)<\/li>\r\n<li>The Eurozone debt crisis (2010\u20132012)<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">Each of these events led to a decline in risk assets like equities and a corresponding rise in demand for gold.<\/p>\r\n<ol start=\"2\">\r\n<li><strong><b> Gold vs. Inflation<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Beyond crisis-driven demand, gold is also viewed as a hedge against inflation. Investors believe that over the long term, gold retains purchasing power better than fiat currencies.<\/p>\r\n<p style=\"padding-left: 40px\">Let\u2019s look at the long-term performance:<\/p>\r\n<ul>\r\n<li>In 1970, gold was priced around $35 per ounce<\/li>\r\n<li>As of October 2025, gold trades near $2,000 per ounce<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">This represents a 57\u00d7 increase over 55 years. Calculated as a compound annual growth rate (CAGR), this translates to approximately 8.2% per year.<\/p>\r\n<p style=\"padding-left: 40px\">Now compare this with global average inflation:<\/p>\r\n<ul>\r\n<li>World inflation average: 5\u20136% annually<\/li>\r\n<li>India\u2019s inflation average: often 6\u20137% or higher<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">This means that while gold may outperform inflation globally by 2\u20133%, its real return in high-inflation economies like India is more modest.<\/p>\r\n<ol start=\"3\">\r\n<li><strong><b> Key Drivers of Gold Prices<\/b><\/strong><\/li>\r\n<\/ol>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Factor<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Impact on Gold Price<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Geopolitical uncertainty<\/p>\r\n<\/td>\r\n<td>\r\n<p>Increases demand for gold<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Inflation<\/p>\r\n<\/td>\r\n<td>\r\n<p>Drives long-term investment in gold<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Interest rates<\/p>\r\n<\/td>\r\n<td>\r\n<p>Lower rates make gold more attractive<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Currency movements (USD\/INR)<\/p>\r\n<\/td>\r\n<td>\r\n<p>Weakening rupee increases domestic gold prices<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Central bank policies<\/p>\r\n<\/td>\r\n<td>\r\n<p>Gold demand rises with dovish monetary stance<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Demand from ETFs and retail<\/p>\r\n<\/td>\r\n<td>\r\n<p>Influences short-term price momentum<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table><\/div>\n<div id='text_slider_slide04' class='sa_hover_container' data-hash='Technical-Analysis-on-Gold\u2013A-Practical-Trading-Setup ' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.4 <\/strong><strong><b>Technical Analysis on Gold \u2013 A Practical Trading Setup<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Warning-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Warning-rafiki.svg\" \/><\/a><\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0So gold prices move with global events, inflation, interest rates\u2026 it\u2019s a lot to track.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0True, and that\u2019s why many traders use technical analysis to simplify decision-making\u2014especially for short-term trades.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0You mean charts, moving averages, that kind of stuff?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. TA helps you spot trends, entry points, and exit levels without needing to decode every macro headline.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Sounds practical. Can we look at a real setup for gold right now?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Sure. Let\u2019s walk through a current trade plan using the October 2025 chart. It\u2019s a great example of how TA works in action.<\/p>\r\n<p>Technical Analysis (TA) is a universal toolkit for traders, applicable across equities, currencies, and commodities. In this module, we\u2019ll walk through a short-term trading setup for gold using TA principles and current market data. The goal is to demonstrate how to build a trade plan using price action, moving averages, and chart patterns.<\/p>\r\n<h3><strong><b>Step 1: Establishing the Broader Trend<\/b><\/strong><\/h3>\r\n<p>Before initiating any trade, I begin with a 2-year daily chart to understand the primary trend. This helps identify whether the market favors long or short positions.<\/p>\r\n<p>Observations from the Gold Chart (2023\u20132025):<\/p>\r\n<ul>\r\n<li>Gold consolidated between \u20b91,15,000 and \u20b91,22,000 per 10 grams through most of 2023.<\/li>\r\n<li>A breakout occurred in May 2025, initiating a strong uptrend.<\/li>\r\n<li>As of October 21, 2025, MCX Gold December futures are trading at \u20b91,30,588 per 10 grams, marking a new high.<\/li>\r\n<li>The trend is clearly bullish, supported by higher highs and strong volume.<\/li>\r\n<\/ul>\r\n<p><strong><b>Conclusion: <\/b><\/strong>The broader trend favors long trades. Any short positions must be tactical and tightly managed.<\/p>\r\n<h3><strong><b>Step 2: Short-Term Chart Setup<\/b><\/strong><\/h3>\r\n<p>Switching to a daily chart with 9-day and 21-day exponential moving averages (EMAs):<\/p>\r\n<ul>\r\n<li>The 8 EMA has crossed above the 21 EMA, confirming short-term momentum.<\/li>\r\n<li>Price action is holding above the pivot zone of \u20b91,28,800, indicating accumulation.<\/li>\r\n<li>Bollinger Bands are expanding on the upper side, suggesting breakout potential.<\/li>\r\n<\/ul>\r\n<h3><strong><b>Step 3: Trade Plan<\/b><\/strong><\/h3>\r\n<p>Based on the chart structure and moving average alignment, here\u2019s a sample trade setup:<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p>Trade Parameter<\/p>\r\n<\/td>\r\n<td>\r\n<p>Value<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Position<\/p>\r\n<\/td>\r\n<td>\r\n<p>Long<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Entry Price<\/p>\r\n<\/td>\r\n<td>\r\n<p>Above \u20b91,30,600<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Target<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,32,000<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Stoploss<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,28,800<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Reward-to-Risk<\/p>\r\n<\/td>\r\n<td>\r\n<p>Approx. 1.8<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>% Move from Entry<\/p>\r\n<\/td>\r\n<td>\r\n<p>~1.07%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>This setup aligns with the broader uptrend and offers a favorable risk-reward ratio. Given gold\u2019s volatility, such a move could materialize within a single session.<\/p>\r\n<h3><strong><b>Step 4: Liquidity Consideration<\/b><\/strong><\/h3>\r\n<p>Gold futures contracts are introduced months in advance, but liquidity builds closer to expiry. Always trade near-month contracts for better volume and tighter spreads. For October 2025, the December contract is the most active.<\/p><\/div>\n<div id='text_slider_slide05' class='sa_hover_container' data-hash='Key-Takeaways' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.5 <\/strong><strong><b>Key Takeaways<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\" \/><\/a><\/p>\r\n<ul>\r\n<li>Global gold prices are set through the London Fix, a twice-daily process led by major bullion banks under the LBMA.<\/li>\r\n<li>In India, gold prices are determined locally by the Indian Bullion and Jewellers Association (IBJA) based on dealer quotes and import costs.<\/li>\r\n<li>Gold prices on MCX and CME differ due to factors like import duties, taxes, and currency conversion, not because of arbitrage opportunities.<\/li>\r\n<li>India\u2019s landed gold price includes CIF, customs duty, AIDC, and bank charges, which can add 5\u201310% to the international base price.<\/li>\r\n<li>Gold acts as a safe haven asset, with prices rising during global crises like wars, pandemics, and financial meltdowns.<\/li>\r\n<li>Over the long term, gold has outpaced inflation, growing at a CAGR of around 8.2% from 1970 to 2025.<\/li>\r\n<li>Key drivers of gold prices include geopolitical risk, inflation, interest rates, currency movements, and central bank policies.<\/li>\r\n<li>Technical analysis helps traders plan short-term gold trades, using tools like moving averages, Bollinger Bands, and price action.<\/li>\r\n<li>A bullish setup in October 2025 shows gold breaking out, with a trade plan targeting \u20b91,32,000 and a stoploss at \u20b91,28,800.<\/li>\r\n<li>Liquidity is highest in near-month gold futures contracts, so traders should focus on active contracts like December 2025 for better execution.<\/li>\r\n<\/ul><\/div>\n<div id='text_slider_slide06' class='sa_hover_container' data-hash='Fun-Activities' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.6 <\/strong><strong><b>Fun Activity<\/b><\/strong><strong><b>:\u00a0<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>You\u2019re a gold trader trying to explain why MCX gold futures are trading higher than CME gold futures. Use the clues below to calculate the domestic price and identify the key cost components.<\/p>\r\n<p><strong><b>Scenario:<\/b><\/strong><\/p>\r\n<p>You observe the following data on October 20, 2025:<\/p>\r\n<ul>\r\n<li>CME Gold Spot Price: $4,238.58 per troy ounce<\/li>\r\n<li>1 troy ounce = 31.1035 grams<\/li>\r\n<li>USD\/INR exchange rate: \u20b987.97<\/li>\r\n<li>Import duty and charges in India: 8%<\/li>\r\n<li>MCX Gold Futures Price: \u20b91,32,485 per 10 grams<\/li>\r\n<\/ul>\r\n<p><strong><b>Questions:<\/b><\/strong><\/p>\r\n<ol>\r\n<li>What is the international price of 10 grams of gold in USD?<\/li>\r\n<li>Convert this to INR using the exchange rate.<\/li>\r\n<li>Add 8% import duty and charges. What is the landed price in India?<\/li>\r\n<li>Compare this with the MCX futures price. What is the price gap?<\/li>\r\n<li>Name two reasons why this gap exists.<\/li>\r\n<\/ol>\r\n<p><strong><b>Answer Key:<\/b><\/strong><\/p>\r\n<ol>\r\n<li>$4,238.58 \u00f7 31.1035 \u00d7 10 = $1,362.87<\/li>\r\n<li>$1,362.87 \u00d7 \u20b987.97 = \u20b91,19,899<\/li>\r\n<li>\u20b91,19,899 + 8% = \u20b91,29,491<\/li>\r\n<li>MCX Futures = \u20b91,32,485<\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Price Gap = \u20b91,32,485 \u2212 \u20b91,29,491 = \u20b92,994<\/p>\r\n<ol start=\"5\">\r\n<li><strong>Import duties and taxes<\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Futures premium and local demand-supply dynamic<\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.text_slider_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tjQuery('.text_slider_goto4').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 3);\n\t\t});\n\t\tjQuery('.text_slider_goto5').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 4);\n\t\t});\n\t\tjQuery('.text_slider_goto6').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 5);\n\t\t});\n\t\tvar resize_75465 = jQuery('.owl-carousel');\n\t\tresize_75465.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"slides-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"slides-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='The-London-Fix\u2013How-Global-and-Domestic-Gold-Prices-Are-Set' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><strong>9.1 <\/strong><strong><b>The London Fix \u2013 How Global and Domestic Gold Prices Are Set<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Exams-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Exams-rafiki.svg\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Isha, I\u2019ve always wondered\u2014who actually decides the price of gold each day?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0That\u2019s a great question, Varun. Globally, it\u2019s done through something called the London Fix, and in India, we have our own system.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0London Fix? Sounds fancy. Is it still relevant?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0It\u2019s more of a tradition now, but yes\u2014it still sets the global benchmark. And in India, prices are set based on dealer quotes and import costs.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Interesting. So both global and local factors shape the price we see?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. Let me walk you through how both systems work\u2014it\u2019s actually quite fascinating.<\/p>\r\n<p><strong>Overview<\/strong><\/p>\r\n<p>Before diving deeper into gold price dynamics, it&#8217;s worth exploring how spot prices are determined internationally and in India. While these mechanisms have limited direct relevance to trading gold futures on MCX, they offer valuable context and historical insight into how benchmark prices are established.<\/p>\r\n<p><strong>International Price Discovery: The London Fix<\/strong><\/p>\r\n<p>Globally, the benchmark price of gold is set in London through a process known as the London Fix, conducted twice daily:<\/p>\r\n<ul>\r\n<li>AM Fix: 10:30 AM London time<\/li>\r\n<li>PM Fix: 3:00 PM London time<\/li>\r\n<\/ul>\r\n<p>This process is coordinated by London\u2019s leading bullion banks, originally facilitated by N.M. Rothschild &amp; Sons. Today, the procedure is overseen by the London Bullion Market Association (LBMA).<\/p>\r\n<p><strong>How It Works<\/strong><\/p>\r\n<ul>\r\n<li>Around 10\u201311 major banks participate, including names like JP Morgan, Standard Chartered, ScotiaMocatta, and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.<\/li>\r\n<li>At the scheduled time, dealers from these banks join a secure conference call.<\/li>\r\n<li>Each participant submits buy and sell orders based on client demand and market conditions.<\/li>\r\n<li>An average price is calculated from these bids and offers, which becomes the official gold price for that session.<\/li>\r\n<li>The process typically lasts 10\u201315 minutes and is repeated in the afternoon.<\/li>\r\n<\/ul>\r\n<p>Though the London Fix closely mirrors actual trading prices in global markets, many view it as a symbolic tradition\u2014a legacy mechanism that continues more for consistency than necessity.<\/p>\r\n<p><strong>Domestic Price Discovery: The Indian Bullion Mechanism<\/strong><\/p>\r\n<p>India, being one of the world\u2019s largest consumers of gold, follows a more localized approach to price setting.<\/p>\r\n<p><strong>Key Steps<\/strong><\/p>\r\n<ol>\r\n<li>Designated banks import gold into India.<\/li>\r\n<li>These banks distribute gold to bullion dealers, adding import duties and handling charges.<\/li>\r\n<li>The Indian Bullion and Jewellers Association (IBJA) collects buy\/sell quotes from its dealer network.<\/li>\r\n<li>These quotes are averaged to arrive at a daily reference price, which is then circulated to jewellers and traders.<\/li>\r\n<\/ol><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Understanding Gold Price Disparity\u2013CME-vs-MCX' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><strong>9.2\u00a0 <\/strong><b><\/b><strong><b>Understanding Gold Price Disparity \u2013 CME vs. MCX<\/b><\/strong><\/h2>\r\n<h2 style=\"text-align: left\">\u00a0<\/h2>\r\n<h3 style=\"text-align: left\"><strong><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/New-entries-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/New-entries-rafiki.svg\" \/><\/a><\/strong><\/h3>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Isha, now I\u2019m curious\u2014if the global price is set in London, shouldn\u2019t gold prices be the same everywhere?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0That\u2019s a common thought, but not quite. Gold prices can vary a lot between global exchanges like CME and domestic ones like MCX.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Really? I thought any difference would mean an easy arbitrage trade.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0It\u2019s not that simple. India adds import duties, taxes, and other costs to the global price. That\u2019s why MCX prices are usually higher.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Ah, so the gap is because of how gold lands in India?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. Let me show you how the price difference actually works\u2014it\u2019s a great example of how global and local markets connect.<\/p>\r\n<p>Gold is a globally traded commodity, and many traders assume that its price should be uniform across international exchanges. This leads to a common misconception: if gold futures are priced differently on the Chicago Mercantile Exchange (CME) and the Multi Commodity Exchange (MCX), there must be an arbitrage opportunity.<\/p>\r\n<p>However, this assumption overlooks key structural differences in how gold is priced and traded across regions. Let\u2019s break it down.<\/p>\r\n<h3><strong><b>Why Prices Differ Across Exchanges<\/b><\/strong><\/h3>\r\n<p>At first glance, it seems logical to expect parity. For example, if 10 grams of 995 purity gold is quoted at $430 on CME, then the MCX price for the same quantity and purity should also hover around $430 (converted to INR). But in reality, prices on MCX and CME often diverge significantly.<\/p>\r\n<p>To understand why, we need to examine how gold\u2019s spot price evolves in India, and how that influences futures pricing.<\/p>\r\n<h3><strong><b>Step 1: International Spot Price Conversion<\/b><\/strong><\/h3>\r\n<p>Gold is quoted internationally in troy ounces, where:<\/p>\r\n<ul>\r\n<li>1 troy ounce = 31.1035 grams<\/li>\r\n<\/ul>\r\n<p>As of October 20, 2025, the spot price of gold in the US market is approximately:<\/p>\r\n<ul>\r\n<li>$4,238.58 per troy ounce<\/li>\r\n<\/ul>\r\n<p>To convert this to 10 grams:<\/p>\r\n<p>Using the current USD to INR exchange rate of \u20b987.97 per $1:<\/p>\r\n<p>This is the theoretical base price of 10 grams of gold in India, assuming no additional costs.<\/p>\r\n<h3><strong><b>Step 2: Import Costs and Duties<\/b><\/strong><\/h3>\r\n<p>India is a net importer of gold, and the actual landed price includes several charges:<\/p>\r\n<ul>\r\n<li>CIF (Cost, Insurance, Freight)<\/li>\r\n<li>Customs duty (currently around 15%)<\/li>\r\n<li>Agriculture Infrastructure and Development Cess (AIDC)<\/li>\r\n<li>Bank handling charges and premiums<\/li>\r\n<\/ul>\r\n<p>These costs can add 5\u201310% or more to the base price. For example, if the international price is \u20b91,19,899 per 10 grams, the effective domestic spot price may rise to:<\/p>\r\n<p>This explains the disparity of \u20b99,500\u2013\u20b910,000 between global and Indian spot prices.<\/p>\r\n<h3><strong><b>Step 3: Futures Pricing Formula<\/b><\/strong><\/h3>\r\n<p>Futures prices are derived from spot prices using the formula:<\/p>\r\n<p><strong><b>F = S \u00d7 e^(r \u00d7 t)<\/b><\/strong><\/p>\r\n<p>Where:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>F<\/b><\/strong>= Futures price<\/li>\r\n<li><b><\/b><strong><b>S<\/b><\/strong>= Spot price<\/li>\r\n<li><b><\/b><strong><b>r<\/b><\/strong>= Risk-free interest rate<\/li>\r\n<li><b><\/b><strong><b>t<\/b><\/strong>= Time to expiry<\/li>\r\n<li><b><\/b><strong><b>e<\/b><\/strong>= Exponential constant (~2.718)<\/li>\r\n<\/ul>\r\n<p>In the US, futures are priced off the lower spot price of $4,238.58 per ounce. In India, futures are priced off the higher landed spot price, which includes import duties and taxes.<\/p>\r\n<p>As of October 20, 2025, the MCX Gold December futures are trading at:<\/p>\r\n<ul>\r\n<li>\u20b91,32,485 per 10 grams<\/li>\r\n<\/ul>\r\n<p>This is consistent with the inflated domestic spot price and explains why CME and MCX futures prices differ significantly.<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='What-Drives-the-Price-of-Gold?' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.3 <\/strong><strong><b>What Drives the Price of Gold?<\/b><\/strong><\/h2>\r\n<p style=\"text-align: left\"><em><span style=\"color: #000080\"><strong><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Search-engines-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Search-engines-bro.svg\" \/><\/a><\/strong><\/span><\/em><\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0So MCX gold prices are higher because of import duties and taxes. Makes sense now.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. But that\u2019s just the pricing structure. The real question is\u2014what actually moves gold prices up or down?<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0You mean apart from supply and demand?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Yes, much more than that. Gold reacts to global events, inflation, interest rates\u2014even currency movements like USD-INR.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Sounds like gold is more emotional than I thought.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0You\u2019re not wrong. Let\u2019s look at the key factors that drive gold prices\u2014it\u2019s a fascinating mix of fear, finance, and fundamentals.<\/p>\r\n<p>Gold has long held a reputation as a safe haven asset, especially during periods of economic or geopolitical uncertainty. When markets turn volatile, investors across the globe instinctively shift toward gold\u2014not for short-term gains, but to preserve wealth.<\/p>\r\n<p>Here\u2019s a line chart showing the historical rise in gold prices from 1970 to 2025. It highlights key milestones:<\/p>\r\n<ul>\r\n<li>Gold was around <strong><b>$35\/oz in 1970<\/b><\/strong><\/li>\r\n<li>Surged to <strong><b>$615\/oz by 1980<\/b><\/strong><\/li>\r\n<li>Rose steadily to <strong><b>$2,000\/oz in 2025<\/b><\/strong><\/li>\r\n<\/ul>\r\n<ol>\r\n<li><strong><b> Gold as a Safe Haven During Global Events<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">History shows that gold prices tend to rise in response to major global disruptions. A recent example is the Russia\u2013Ukraine conflict, which escalated in early 2022. In the weeks following the invasion, gold surged from around $1,800 to over $2,050 per ounce, as investors sought refuge from geopolitical risk and inflationary pressures.<\/p>\r\n<p style=\"padding-left: 40px\">Other events that have historically triggered gold rallies include:<\/p>\r\n<ul>\r\n<li>The COVID-19 pandemic (2020)<\/li>\r\n<li>The US banking crisis (March 2023)<\/li>\r\n<li>The Middle East tensions (ongoing)<\/li>\r\n<li>The Lehman Brothers collapse (2008)<\/li>\r\n<li>The Eurozone debt crisis (2010\u20132012)<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">Each of these events led to a decline in risk assets like equities and a corresponding rise in demand for gold.<\/p>\r\n<ol start=\"2\">\r\n<li><strong><b> Gold vs. Inflation<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Beyond crisis-driven demand, gold is also viewed as a hedge against inflation. Investors believe that over the long term, gold retains purchasing power better than fiat currencies.<\/p>\r\n<p style=\"padding-left: 40px\">Let\u2019s look at the long-term performance:<\/p>\r\n<ul>\r\n<li>In 1970, gold was priced around $35 per ounce<\/li>\r\n<li>As of October 2025, gold trades near $2,000 per ounce<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">This represents a 57\u00d7 increase over 55 years. Calculated as a compound annual growth rate (CAGR), this translates to approximately 8.2% per year.<\/p>\r\n<p style=\"padding-left: 40px\">Now compare this with global average inflation:<\/p>\r\n<ul>\r\n<li>World inflation average: 5\u20136% annually<\/li>\r\n<li>India\u2019s inflation average: often 6\u20137% or higher<\/li>\r\n<\/ul>\r\n<p style=\"padding-left: 40px\">This means that while gold may outperform inflation globally by 2\u20133%, its real return in high-inflation economies like India is more modest.<\/p>\r\n<ol start=\"3\">\r\n<li><strong><b> Key Drivers of Gold Prices<\/b><\/strong><\/li>\r\n<\/ol>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Factor<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Impact on Gold Price<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Geopolitical uncertainty<\/p>\r\n<\/td>\r\n<td>\r\n<p>Increases demand for gold<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Inflation<\/p>\r\n<\/td>\r\n<td>\r\n<p>Drives long-term investment in gold<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Interest rates<\/p>\r\n<\/td>\r\n<td>\r\n<p>Lower rates make gold more attractive<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Currency movements (USD\/INR)<\/p>\r\n<\/td>\r\n<td>\r\n<p>Weakening rupee increases domestic gold prices<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Central bank policies<\/p>\r\n<\/td>\r\n<td>\r\n<p>Gold demand rises with dovish monetary stance<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Demand from ETFs and retail<\/p>\r\n<\/td>\r\n<td>\r\n<p>Influences short-term price momentum<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table><\/div>\n<div id='text_slider_slide04' class='sa_hover_container' data-hash='Technical-Analysis-on-Gold\u2013A-Practical-Trading-Setup ' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.4 <\/strong><strong><b>Technical Analysis on Gold \u2013 A Practical Trading Setup<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Warning-rafiki.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Warning-rafiki.svg\" \/><\/a><\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0So gold prices move with global events, inflation, interest rates\u2026 it\u2019s a lot to track.<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0True, and that\u2019s why many traders use technical analysis to simplify decision-making\u2014especially for short-term trades.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0You mean charts, moving averages, that kind of stuff?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Exactly. TA helps you spot trends, entry points, and exit levels without needing to decode every macro headline.<\/p>\r\n<p><strong><b>Varun:<\/b><\/strong>\u00a0Sounds practical. Can we look at a real setup for gold right now?<\/p>\r\n<p><strong><b>Isha:<\/b><\/strong>\u00a0Sure. Let\u2019s walk through a current trade plan using the October 2025 chart. It\u2019s a great example of how TA works in action.<\/p>\r\n<p>Technical Analysis (TA) is a universal toolkit for traders, applicable across equities, currencies, and commodities. In this module, we\u2019ll walk through a short-term trading setup for gold using TA principles and current market data. The goal is to demonstrate how to build a trade plan using price action, moving averages, and chart patterns.<\/p>\r\n<h3><strong><b>Step 1: Establishing the Broader Trend<\/b><\/strong><\/h3>\r\n<p>Before initiating any trade, I begin with a 2-year daily chart to understand the primary trend. This helps identify whether the market favors long or short positions.<\/p>\r\n<p>Observations from the Gold Chart (2023\u20132025):<\/p>\r\n<ul>\r\n<li>Gold consolidated between \u20b91,15,000 and \u20b91,22,000 per 10 grams through most of 2023.<\/li>\r\n<li>A breakout occurred in May 2025, initiating a strong uptrend.<\/li>\r\n<li>As of October 21, 2025, MCX Gold December futures are trading at \u20b91,30,588 per 10 grams, marking a new high.<\/li>\r\n<li>The trend is clearly bullish, supported by higher highs and strong volume.<\/li>\r\n<\/ul>\r\n<p><strong><b>Conclusion: <\/b><\/strong>The broader trend favors long trades. Any short positions must be tactical and tightly managed.<\/p>\r\n<h3><strong><b>Step 2: Short-Term Chart Setup<\/b><\/strong><\/h3>\r\n<p>Switching to a daily chart with 9-day and 21-day exponential moving averages (EMAs):<\/p>\r\n<ul>\r\n<li>The 8 EMA has crossed above the 21 EMA, confirming short-term momentum.<\/li>\r\n<li>Price action is holding above the pivot zone of \u20b91,28,800, indicating accumulation.<\/li>\r\n<li>Bollinger Bands are expanding on the upper side, suggesting breakout potential.<\/li>\r\n<\/ul>\r\n<h3><strong><b>Step 3: Trade Plan<\/b><\/strong><\/h3>\r\n<p>Based on the chart structure and moving average alignment, here\u2019s a sample trade setup:<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p>Trade Parameter<\/p>\r\n<\/td>\r\n<td>\r\n<p>Value<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Position<\/p>\r\n<\/td>\r\n<td>\r\n<p>Long<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Entry Price<\/p>\r\n<\/td>\r\n<td>\r\n<p>Above \u20b91,30,600<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Target<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,32,000<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Stoploss<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,28,800<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Reward-to-Risk<\/p>\r\n<\/td>\r\n<td>\r\n<p>Approx. 1.8<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>% Move from Entry<\/p>\r\n<\/td>\r\n<td>\r\n<p>~1.07%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>This setup aligns with the broader uptrend and offers a favorable risk-reward ratio. Given gold\u2019s volatility, such a move could materialize within a single session.<\/p>\r\n<h3><strong><b>Step 4: Liquidity Consideration<\/b><\/strong><\/h3>\r\n<p>Gold futures contracts are introduced months in advance, but liquidity builds closer to expiry. Always trade near-month contracts for better volume and tighter spreads. For October 2025, the December contract is the most active.<\/p><\/div>\n<div id='text_slider_slide05' class='sa_hover_container' data-hash='Key-Takeaways' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.5 <\/strong><strong><b>Key Takeaways<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\" \/><\/a><\/p>\r\n<ul>\r\n<li>Global gold prices are set through the London Fix, a twice-daily process led by major bullion banks under the LBMA.<\/li>\r\n<li>In India, gold prices are determined locally by the Indian Bullion and Jewellers Association (IBJA) based on dealer quotes and import costs.<\/li>\r\n<li>Gold prices on MCX and CME differ due to factors like import duties, taxes, and currency conversion, not because of arbitrage opportunities.<\/li>\r\n<li>India\u2019s landed gold price includes CIF, customs duty, AIDC, and bank charges, which can add 5\u201310% to the international base price.<\/li>\r\n<li>Gold acts as a safe haven asset, with prices rising during global crises like wars, pandemics, and financial meltdowns.<\/li>\r\n<li>Over the long term, gold has outpaced inflation, growing at a CAGR of around 8.2% from 1970 to 2025.<\/li>\r\n<li>Key drivers of gold prices include geopolitical risk, inflation, interest rates, currency movements, and central bank policies.<\/li>\r\n<li>Technical analysis helps traders plan short-term gold trades, using tools like moving averages, Bollinger Bands, and price action.<\/li>\r\n<li>A bullish setup in October 2025 shows gold breaking out, with a trade plan targeting \u20b91,32,000 and a stoploss at \u20b91,28,800.<\/li>\r\n<li>Liquidity is highest in near-month gold futures contracts, so traders should focus on active contracts like December 2025 for better execution.<\/li>\r\n<\/ul><\/div>\n<div id='text_slider_slide06' class='sa_hover_container' data-hash='Fun-Activities' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>9.6 <\/strong><strong><b>Fun Activity<\/b><\/strong><strong><b>:\u00a0<\/b><\/strong><\/h2>\r\n<p><a href=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\"><img decoding=\"async\" class=\"style-svg aligncenter\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/11\/Questions-bro.svg\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>You\u2019re a gold trader trying to explain why MCX gold futures are trading higher than CME gold futures. Use the clues below to calculate the domestic price and identify the key cost components.<\/p>\r\n<p><strong><b>Scenario:<\/b><\/strong><\/p>\r\n<p>You observe the following data on October 20, 2025:<\/p>\r\n<ul>\r\n<li>CME Gold Spot Price: $4,238.58 per troy ounce<\/li>\r\n<li>1 troy ounce = 31.1035 grams<\/li>\r\n<li>USD\/INR exchange rate: \u20b987.97<\/li>\r\n<li>Import duty and charges in India: 8%<\/li>\r\n<li>MCX Gold Futures Price: \u20b91,32,485 per 10 grams<\/li>\r\n<\/ul>\r\n<p><strong><b>Questions:<\/b><\/strong><\/p>\r\n<ol>\r\n<li>What is the international price of 10 grams of gold in USD?<\/li>\r\n<li>Convert this to INR using the exchange rate.<\/li>\r\n<li>Add 8% import duty and charges. What is the landed price in India?<\/li>\r\n<li>Compare this with the MCX futures price. What is the price gap?<\/li>\r\n<li>Name two reasons why this gap exists.<\/li>\r\n<\/ol>\r\n<p><strong><b>Answer Key:<\/b><\/strong><\/p>\r\n<ol>\r\n<li>$4,238.58 \u00f7 31.1035 \u00d7 10 = $1,362.87<\/li>\r\n<li>$1,362.87 \u00d7 \u20b987.97 = \u20b91,19,899<\/li>\r\n<li>\u20b91,19,899 + 8% = \u20b91,29,491<\/li>\r\n<li>MCX Futures = \u20b91,32,485<\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Price Gap = \u20b91,32,485 \u2212 \u20b91,29,491 = \u20b92,994<\/p>\r\n<ol start=\"5\">\r\n<li><strong>Import duties and taxes<\/strong><\/li>\r\n<\/ol>\r\n<p style=\"padding-left: 40px\">Futures premium and local demand-supply dynamic<\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.text_slider_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tjQuery('.text_slider_goto4').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 3);\n\t\t});\n\t\tjQuery('.text_slider_goto5').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 4);\n\t\t});\n\t\tjQuery('.text_slider_goto6').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 5);\n\t\t});\n\t\tvar resize_75465 = jQuery('.owl-carousel');\n\t\tresize_75465.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"videos-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"videos-tab\">\n\t\t\t\t                            <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Study Slides Videos 8.1 The London Fix \u2013 How Global and Domestic Gold Prices Are Set &nbsp; Varun:\u00a0Isha, I\u2019ve always wondered\u2014who actually decides the price of gold each day? Isha:\u00a0That\u2019s a great question, Varun. Globally, it\u2019s done through something called the London Fix, and in India, we have our own system. Varun:\u00a0London Fix? Sounds fancy. &#8230; <a title=\"Gold-Part 2\" class=\"read-more\" href=\"https:\/\/www.5paisa.com\/finschool\/course\/currency-commodity-government-securities-course\/gold-part-2\/\" aria-label=\"Read more about Gold-Part 2\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":13805,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-75483","markets","type-markets","status-publish","format-standard","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/75483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/markets"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=75483"}],"version-history":[{"count":6,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/75483\/revisions"}],"predecessor-version":[{"id":75873,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/75483\/revisions\/75873"}],"up":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/13805"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=75483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=75483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}