Manappuram, Muthoot shares fall up to 3.5% as gold falls below $4,000/ounce

Manappuram, Muthoot shares fall up to 3.5% as gold falls below $4,000/ounce

Share prices of gold financier companies fell up to 3.5% on October 10 as gold prices fell 2% on Thursday as dollar pushed higher and gold investors booked profits following a ceasefire deal between Israel and Hamas.

Spot gold fell nearly 2% to $3,959.48 per ounce by 01:53 p.m. ET (17:53 GMT). US gold futures for December delivery fell 2.4% to settle at $3,972.6.

"Speculators are taking some gold chips off the table as the Gaza ceasefire takes effect since it reduces the temperature in a historically volatile region," Tai Wong, an independent metals trader, told Reuters.

At 12 pm on October 10, Muthoot Finance shares were trading 2.3% lower at Rs 3,172.7 apiece while those of Manappuram Finance were 3.3% lower at Rs 284.5 apiece. Manappuram shares rose 26% in the past six months while Muthoot Finance rose 57%.

Bullion surged past $4,000 per ounce for the first time on Wednesday, reaching a record high of $4,059.05. The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52% this year.

Its rally has been fueled by geopolitical tension, robust central bank buying, rising ETF inflows, expectations of US rate cuts and tariff-related economic uncertainties.

Silver has risen 69% this year, driven by the same macroeconomic forces fueling gold's rally and tight supply in the spot market.

Kotak Mahindra has temporarily halted new investments in silver ETF amid a shortage.