Story thread · 2 reports / 1 sources

Muthoot, Manappuram Finance shares jump up to 7% in 2 days as gold crosses Rs 1.6 lakh/10 gm

economictimes.indiatimes.com · 4hShare

Shares of gold loan providers, including Muthoot Finance, Manappuram Finance and IIFL Finance, extended their gains on Friday as gold prices continued to climb, supported by a weaker dollar and the US Treasury’s bond-buyback move.Gold prices have been recording sharp gains since Thursday after a surprise liquidity support announcement by the US Treasury pushed yields and the dollar lower.Gold futures on the MCX with an October expiry crossed Rs 1.6 lakh per 10 grams, while the December and February contracts traded above Rs 1.62 lakh and Rs 1.64 lakh per 10 grams, respectively.Muthoot Finance, Manappuram Finance and IIFL Finance provide loans with gold as collateral.Rising gold prices will increase the value of the pledged collateral. Since gold loans are sanctioned based on the per-gram valuation of gold, higher prices will require borrowers to pledge less jewellery to access the same loan amount, which in turn can make such loans more attractive.Muthoot Finance shares jumped 3% on Fr

First report: L&T Finance to open 500 gold loan branches — economictimes.indiatimes.com, 2d