Muthoot, Manappuram Finance shares jump up to 7% in 2 days as gold crosses Rs 1.6 lakh/10 gm
Gold loan stocks Muthoot Finance, Manappuram Finance and IIFL Finance gained up to 7% in two sessions as gold prices crossed Rs 1.6 lakh per 10 grams on the MCX. A weaker dollar and the US Treasury’s bond-buyback move supported gold prices, boosting sentiment around gold-backed lending companies.
Gold loan providers Muthoot Finance, Manappuram Finance, and IIFL Finance experienced significant gains over the past two days as gold prices reached new heights, reaching Rs 1.6 lakh per 10 grams on the MCX. The surge in gold prices was driven by a weaker US dollar and the US Treasury's bond-buyback program, which reduced yields and buoyed the metal's value.
As gold prices climbed, the value of collateral pledged for gold loans increased, making such loans more appealing to borrowers. Muthoot Finance shares surged 3%, while Manappuram Finance rose over 2% and IIFL Finance climbed around 6%. Over the same period, the three stocks gained 5-7%. The US Treasury's decision to double the size of its liquidity support buyback operations for longer-dated notes and bonds, combined with a weaker US dollar, contributed to the gold price rally.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
