Manappuram Fin, Muthoot Fin, Vaibhav Global bask in gold's record run

 

As gold zoomed to new highs, stocks such as Manappuram Finance, Muthoot Finance and Vaibhav Global surged up to 4 percent on April 4 intra-day deals.

The yellow metal reached a new lifetime high of 70,248, according to MCX, after chairman Jerome Powell said the US Federal Reserve would likely begin cutting rates at some point this year.

Sustained interest in buying gold from central banks also supported the spike in the price of the precious metal.

The spike stands to benefit gold loan companies like Muthoot Finance, Manappuram Finance and others as it lifts the value of the collateral held by them. Likewise, shares of both Muthoot Finance, and Manappuram Finance scaled a 52-week high.

The precious metal is also getting a boost from increased geopolitical tensions, especially in regions like the Middle East and Ukraine, along with ongoing central bank purchases.