Gold hits fresh record high on Fed rate cut hopes; Manappuram, IIFL Finance shares jump up to 3%

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The shares of gold financiers jumped on September 16 as the precious metal hit fresh record high levels ahead of the US Federal Reserve's FOMC meeting. This comes as analysts increasingly expect the American central bank to cut rates this time, amid weak jobs data and rising pressure from President Donald Trump's administration.

"Gold prices scaled a record peak, supported by a weaker dollar and US Yields ahead of the Federal Reserve's policy meeting this week, where the central bank is widely expected to cut borrowing rates," said Manav Modi from Motilal Oswal Financial Services.

Gold futures at record high:

Gold futures on the Multi Commodity Exchange (MCX) with October expiry hit a lifetime high of Rs 1,10,548 per 10 grams. Gold futures with December expiry hit a fresh lifetime high of Rs 1,11,599 per 10 grams.

In the domestic markets, the price of 10 grams of 24k gold increased by Rs 870 to Rs 1,11,930, according to data on GoodReturns.

The rising gold prices bodes well for gold financiers, as it increases the value of the collateral while issuing loans. This reduces the risk of default, as the collateral becomes more valuable relative to the loan amount issued against it.

Gold financiers stocks jump:

IIFL Finance shares jumped more than 3.5 percent to trade at Rs 455.10 apiece. The stock has surged around 38 percent in the past six months, and more than 7 percent in 2025 so far. Its P/E ratio currently stands at around 11.

Manappuram Finance shares rose around 2 percent to hit a 52-week high of Rs 296 apiece. The stock gained 11 percent in the past one month, and over 42 percent in the past six months. It has rallied over 54 percent in 2025 so far. The stock’s P/E ratio currently stands at around 32.

Muthoot Finance shares rose more than 2 percent to hit a 52-week high of Rs 2,996.90 apiece. The stock gained nearly 2 percent in the past five days, and more than 7 percent in the past one month. It rose over 28 percent in the past six months. It currently has a P/E ratio of more than 19.

Also read: Our LIVE blog on stock market updates

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.