Gold loan stocks rally as gold prices hit 3-month high

Shares of Muthoot Finance and Manappuram Finance surged up to 4.5% as gold prices reached a three-month high, crossing the Rs 1.63 lakh mark.

The rally is attributed to a weaker US dollar and increased demand for gold-backed loans among Indian households facing financial stress.

JPMorgan analysts noted that the surge in gold loan borrowing reflects a broader trend of rising household debt and liquidity constraints in the current economic cycle.