Gold loan NBFC stocks came under pressure during Thursday’s trading session, with both and falling 3% and 1.45%, respectively. Both stocks have remained under pressure in recent sessions, with Muthoot Finance correcting 6% from its October highs and Manappuram Finance falling by a similar margin of 5%.
These stocks, which had ridden a strong wave in recent months amid an unstoppable rally in the yellow metal, have now caught the bears’ attention as the bullion rally came to a halt and erased some of its gains, driven by an improvement in investors’ risk-on sentiment.
Although both stocks have given up some of their recent gains, they continue to trade with solid year-to-date returns. , while Manappuram Finance has gained around 50% during the same period.
Gold prices are off ₹6500 per 10 grams from the recent peak
Following the recent crash, gold prices on the MCX recovered 3% in Thursday’s trading session to an intraday high of ₹1,24,233 per 10 grams. However, prices are still trading significantly lower than their recent highs.
During Wednesday’s evening session, , leading to a sharp fall of ₹6,516 per 10 grams from the recent peak, with experts attributing the sharp decline to profit booking after an uninterrupted rally.
Despite the recent pullback, gold remains up 58% year-to-date, supported by expectations of further Federal Reserve easing and ongoing geopolitical uncertainties, including reports that the planned Trump-Putin summit was postponed after Moscow refused a Ukraine ceasefire.
Meanwhile, the U.S. dollar index hovered near a one-week high, making dollar-priced bullion more expensive.
The prices, which had surged beyond expectations, have outperformed all other asset classes in 2025 so far. MCX gold has stayed higher for nine consecutive months, with September marking the strongest monthly gain of nearly 13%. Domestic prices crossed the ₹1 lakh per 10 grams mark for the first time in July and have remained above it since.
Gold continues to be viewed as a traditional hedge against uncertainty and inflation and tends to perform well in low-interest-rate environments, as it is a non-yielding asset.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.