Gold Rally Drives Shares of Muthoot Finance and Manappuram Finance Up to 11%

The shares of gold loan providers Muthoot Finance and Manappuram Finance have rallied significantly over the past four days, with gains reaching as high as 11% for Muthoot Finance. The rally comes as gold prices continue to climb, supported by a weaker dollar and continued strength in gold prices.

Muthoot Finance's shares jumped to Rs 3,181, while Manappuram Finance gained over 9% over the past four sessions to reach its day's high of Rs 369. IIFL Finance also saw gains, but not as significant as Muthoot and Manappuram.

The surge in gold prices can be attributed to a surprise liquidity support announcement by the US Treasury, which pushed yields and the dollar lower. As a result, gold has risen nearly Rs 8,200/10 grams over the last four sessions, with Gold futures for October 2026 delivery reaching Rs 1,63,434 per 10 grams.

The dollar's weakness makes gold cheaper for buyers holding other currencies, and investors are closely tracking key US inflation data and a speech by Federal Reserve Chair Kevin Warsh later this week for fresh signals on the outlook for US interest rates.