Gold Loan Stocks Rise as Gold Prices Cross ₹1.80 Lakh on Global Tensions

Gold loan NBFC stocks moved higher on January 29, even as the broader stock market remained under pressure. The rise was supported by a sharp rally in gold prices, which hit fresh record highs.

Muthoot Finance shares jumped 5% to ₹4,149.50, while Manappuram Finance rose 2.5% to ₹298.75. 

Strong Performance in 2025 Boosts Confidence

Both stocks have already delivered strong returns in 2025.

• Manappuram Finance surged 64%, its best yearly performance in five years
• Muthoot Finance gained 78.4% during the year

Gold Prices Hit Record High on MCX

Gold prices extended gains for the third straight session. February futures on the MCX rose 9% to a record ₹1,80,799 per 10 grams, crossing the ₹1.80 lakh mark for the first time. Prices are up 31% so far in January.

In global markets, spot gold crossed $5,600 per ounce, marking a 30% rise this month. The previous session saw the biggest single-day jump since March 2020.

Geopolitical Tensions Drive Safe-Haven Demand

The rally in gold has been fueled by rising geopolitical risks. Tensions in the Middle East resurfaced after US President Donald Trump warned Iran to agree to a nuclear deal or face possible military action.

Trade concerns also weighed on markets after Trump threatened additional tariffs on countries like South Korea and Canada.

Weak Dollar and Fed Uncertainty Support Gold

A weakening US dollar and concerns over the independence of the US Federal Reserve have further supported precious metals. The dollar index recently touched a 4-year low, making gold more attractive to investors.

Even though the US Fed kept interest rates unchanged, expectations around future leadership at the central bank and possible rate cuts have added to gold’s appeal.

Also Read: TCS Announces USD 37 Million Investment to Build Largest Delivery Centre in Brazil!

Conclusion

Rising global tensions, a weak dollar, and strong safe-haven demand have pushed gold prices to record highs. This has lifted gold loan stocks, with investors betting on higher loan demand and improved earnings outlook for NBFCs linked to gold financing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.