Gold prices have hit a new record, sparking a notable rally in the stocks of financial companies closely tied to the yellow metal. Shares of Manappuram Finance and Muthoot Finance saw gains of up to 5%, reflecting the positive sentiment in the market.
In the latest session, Comex gold prices reached $2,563 per ounce, a new all-time high after a strong 1.9% rally. This marks the most significant increase since mid-August 2024. The rise is driven by fresh inflation data, which has strengthened expectations for a potential rate cut by the Federal Reserve next week.
Market analysts now estimate an 85% probability of a 25 basis point rate cut, and there is even a 15% chance of a more aggressive 50 basis point cut. The weakening US dollar has also contributed to the rise in gold prices. In India’s MCX, gold prices surged over 900 points, pushing closer to Rs 74,000 per 10 grams.
As of 10:23 AM today, Manappuram Finance’s stock was up by 4.45% at ₹214.84, while Muthoot Finance saw a rise of 3.85%, trading at ₹2,062.90.
Traders expect the bullish sentiment around gold to continue, possibly driving prices even higher if the Rs 72,000 support level remains intact.
