Muthoot Finance, Manappuram shares rise as gold prices jump 2.5 per cent
Gold financier stocks increased on November 4 after a weaker US dollar and Democratic wins in US midterm elections pushed bullion prices higher.
Shares of gold financier companies, including Muthoot Finance, Manappuram, and IIFL Finance, rose by as much as 8 per cent on November 4, according to Moneycontrol. The increase followed a rise of over 2 per cent in gold prices, which occurred as the US dollar weakened after Democrats took control of both the Senate and the House in US midterm elections.
Bullion prices advanced as much as 2.5 per cent to nearly $4,030 an ounce, marking the largest intraday increase since August. At 2:30 pm on November 4, Muthoot Finance shares were trading 8 per cent higher at Rs 2,728, while Manappuram and IIFL Finance shares were up 4.5 per cent and 6.5 per cent, respectively.
Kyle Rodda, senior financial market analyst at Capital.com, said gold benefited from falling yields and a weaker dollar. He noted that potential gridlock between the US executive and legislature could slow US spending. Christopher Wong, a strategist at Oversea-Chinese Banking Corp, said gold is gaining momentum as markets evaluate if the Democratic results could limit the fiscal agenda of Trump.
Chris Weston, head of research at Pepperstone, said demand for protection against a potentially unpredictable Trump administration provides a backdrop for gold buyers. Meanwhile, the World Gold Council said on Tuesday that India's gold demand is expected to reach a six-year low in 2026 due to high prices affecting jewellery sales and investment demand.