Decomposing the 2026 rupee gold move

Use these inputs (gold prices sourced in the notes; the USDINR at the January high is a hypothetical value for the exercise): gold from $5,608 to $3,975; USDINR from 91.5 to 94.5; duty from 6% to 15%. (a) Decompose the change in the parity price into gold, FX and duty components using (10.16). (b) Compare the rupee and dollar percentage changes. (c) If an Indian investor had bought gold at the January high through an ETF, which components could they have hedged, and with what instruments?