# Muthoot and Manappuram shares rise as gold prices cross Rs 1.6 lakh Gold loan companies' stocks surge as gold prices breach the Rs 1.6 lakh per 10 grams mark. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-08-21 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/884a352d-021e-47b1-821f-d989c4c179ef ## Rise in gold prices Gold prices in India crossed the Rs 1.6 lakh per 10 grams mark, setting a new record. This increase was supported by a weaker US dollar and the US Treasury's bond-buying moves. Gold is emerging as a preferred safe-haven asset during uncertain economic times. ## Performance of gold loan companies Shares of gold loan companies like Muthoot Finance and Manappuram Finance rose by up to 7% in two days. These companies provide loans against gold collateral and are directly impacted by fluctuations in gold prices. ## Market reaction Investors showed interest in these stocks, anticipating that rising gold prices would boost the profitability of gold loan companies. Gold futures on the MCX also saw increased activity. Analysts suggest this trend may continue in the short term. ## Global factors The weakening US dollar led to a rise in commodity prices, including gold. Additionally, the US Treasury's bond-buying program increased market liquidity, making gold investments more attractive. These factors directly influenced gold prices in India. ## Gold loan industry In India, the gold loan industry is widely used, especially in rural areas. Companies like Muthoot Finance and Manappuram Finance provide quick access to credit, serving as a vital financing source for small businesses and individuals. Rising gold prices enhance the collateral value for these firms. ## Investor strategies The surge in gold prices is increasing the need for portfolio diversification. Gold loan company stocks are attracting short-term investors due to their high return potential. However, experts warn of volatility risks and advise caution. ## Other players in the sector Other gold loan companies, such as IIFL Finance, also recorded similar gains. The positive sentiment in the sector could spill over to other areas of financial services. Increased gold-backed lending may boost liquidity and stimulate the economy. ## Long-term implications Sustained increases in gold prices could strengthen the balance sheets of gold loan companies. However, corrections may follow sharp rallies. Investors need to monitor market conditions and central bank policies closely, as these dynamics will shape the sector's future. ## Sources covering this story - https://economictimes.indiatimes.com/markets/stocks/news/muthoot-manappuram-finance-shares-jump-up-to-7-in-2-days-as-gold-crosses-rs-1-6-lakh/10-gm/articleshow/133394594.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._