GOLD FINANCE STOCKS RALLY UP TO 3 PERCENT

MUTHOOTFIN Shares of gold financing companies climbed by up to 3 percent on Monday, November 9, as gold prices rebounded in both domestic and international markets. On the National Stock Exchange, Muthoot Finance shares surged 3 percent. Manappuram Finance gained 0.45 percent to trade, while IIFL Finance shares advanced nearly 0.4 percent. In the domestic futures market, gold prices jumped Rs 1,801, or 1.26 percent, per 10 grams on the Multi Commodity Exchange for December delivery. The contract recorded a trading turnover of 1,007 lots. Globally, gold prices advanced as declining crude oil prices eased inflation concerns. Investors also remained focused on upcoming US inflation data and fresh indications from the Federal Reserve regarding its monetary policy outlook. Oil prices declined after US President Donald Trump indicated that he was highly unlikely to order further attacks on Iran, amid ongoing negotiations to end the conflict. The development eased concerns about potential disruptions to global oil supplies. Lower crude oil prices can help reduce inflationary pressures and ease expectations of interest rates remaining higher for an extended period. This, in turn, reduces the opportunity cost of holding non-yielding assets such as gold, making the precious metal more attractive to investors. Additionally, a weaker US dollar supported gold prices by making the dollar-denominated metal more affordable for buyers holding other currencies.