Gold Prices Hit Lifetime High: Manappuram, IIFL Finance Share Price Jump As Investors Rush To Safe Haven

Gold Price Surge: The prices of the safe haven asset 24 karat gold trading at Rs 1.06 lakh per 10 grams, 22 karat gold at Rs ₹97,250,18 karat at Rs 79,570 per 10 grams, as per Goodreturns.

The 24 karat/ rate marks a lifetime high, continuing its surge into its eight consecutive sessions.

The surge follows a historic run in global markets, where spot gold crossed the USD 3,500 per ounce mark for the first time.

Prices hit $3,508.50 an ounce before trading around $3,496 per ounce in early trade, while US gold futures for December delivery jumped 1.4% to $3,565.50 an ounce, as per a Reuters report.

The domestic rally is buoyed by factors like a weaker dollar, rise in expectations of a Federal Reserve Rate Cut in September

The other factors include safe-haven demand amid geopolitical uncertainty and steady inflows into precious metal ETFs are also keeping gold elevated.

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Gold Financier stocks Gain 2%: How Did IIFL Finance, Manappuram Finance Perform?

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.

Manappuram Finance shares gained nearly 3 percent to trade at around Rs 282 apiece, nearing a record high level after extending gains for the second consecutive session. The stock has now gained more than 8 percent in two days.

IIFL Finance shares gained nearly 2 percent to trade at Rs 447.50 apiece, also extending gains for the second day. Muthoot Finance shares meanwhile gained over 2 percent to hit an intraday high of Rs 2,768 apiece.