Manappuram, Muthoot, IIFL Extend Rally As Gold Hits Record High

Gold financing stocks gained on Tuesday, tracking the metal's record highs. Gold futures on the Multi-Commodity Exchange (MCX) have breached the ₹1.05 lakh per 10-gram mark. It is currently trading at ₹106,090 per 10 grams.

Manappuram Finance was among the top trending stocks on Stocktwits. It had gained 2.8% on Tuesday, adding to its 5.2% gains on Monday. The stock has gained nearly 50% year-to-date.

IIFL Finance advanced nearly 2%, marking a second straight day of gains, while Muthoot Finance also climbed over 2%, adding to yesterday's 2.7% gains.

Gold price in India has surged sharply lately, extending the strong momentum seen through August. Gold rates climbed by more than ₹30,000 per 100 grams in the last 10 days of August, marking one of the steepest rallies in recent months.

The spot gold price is currently $3,478.34 per ounce.

Rising gold prices help gold financiers enhance the value of collateral pledged by borrowers. This lowers the risk of default and allows lenders to maintain healthier balance sheets.

Gold demand is expected to rise this festive season, driven by cultural purchases and expectations of US Federal Reserve rate cuts, said SEBI-registered analyst Palak Jain.

Prices are projected to hover between ₹96,000 and ₹1,01,000 per 10 grams, with a modest upside. A softer dollar and robust consumer sentiment continue to enhance gold's status as a preferred safe-haven asset, she added.

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