Gold loan firms came under pressure on Thursday as the yellow metal continued to retreat from record highs due to profit booking in the bullion market. Shares of Muthoot Finance dropped 4.29% to ₹3,134.20 on the NSE, marking a third straight session of decline and a total fall of nearly 6%. Manappuram Finance also slipped 2.8% to ₹277.90 per share.
Gold prices fell for the third consecutive day as investors booked profits after a sharp rally. Globally, the metal drifted toward the $4,000-an-ounce level amid worries that its earlier surge had gone too far. Lower gold prices usually hurt gold-financing companies, as the value of pledged collateral weakens, reducing loan margins.
Although gold edged slightly higher later in the session, global cues remained weak. Tejas Shigrekar of Angel One said gold has declined 8% from its recent peak, signaling a possible trend reversal after overbought conditions. With India’s festive season ending, physical demand may soften, adding pressure. Still, gold is up around 55% in 2025, supported by expectations of a potential US Federal Reserve rate cut later in the year.
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