MUTHOOT FINANCE, MANAPPURAM RISE UP TO 4.5% AS GOLD RALLIES

Shares of gold loan financiers, including Muthoot Finance, Manappuram Finance and IIFL Finance, gained up to 4.5% as gold prices climbed to their highest level in more than three months. The rally in the precious metal was driven by renewed concerns over a weaker US dollar after the US Treasury’s surprise intervention in the bond market, prompting investors to seek alternative assets. Gold extended its winning streak for a third consecutive week, gaining more than 5% last week after the US Treasury unexpectedly announced an increase in buybacks of long-dated government debt. The move pushed US Treasury yields and the dollar lower, providing further support to bullion. Following Wednesday’s announcement, US Treasury Secretary Scott Bessent indicated that the department could further increase buybacks of higher-cost debt. He also said the administration was preparing to unveil a fiscal initiative aimed at addressing the country’s highest borrowing costs in years. Investor interest in gold has also strengthened. Gold-backed exchange-traded funds tracked by Bloomberg attracted more than 28 tonnes of inflows last week, marking their highest weekly addition since January. The increase indicates broader participation from investors in the precious metal. Further boosting sentiment, billionaire investor and Bridgewater Associates founder Ray Dalio said in a LinkedIn post on Friday that investors should consider reducing their bond exposure and allocating as much as 15% of their portfolios to bullion as a hedge against the risk of a US debt crisis.