GOLD FINANCE STOCKS RALLY UP TO 8 PERCENT

Shares of gold financing companies, including Muthoot Finance, Manappuram Finance and IIFL Finance, rallied up to 8% on November 4 after gold prices climbed more than 2%, supported by a weakening US dollar. The rally came amid changing political dynamics in the US following Democrats' gains in the Senate and House during the midterm elections. Investors are also awaiting the US non-farm payrolls data for further indications of the Federal Reserve's monetary policy direction. Gold prices gained momentum as both US Treasury yields and the dollar declined. Market participants believe that potential political gridlock between the US administration and Congress could restrict government spending and limit President Donald Trump's fiscal expansion plans. This shift in expectations has provided additional support to the precious metal. Meanwhile, geopolitical uncertainties continue to influence market sentiment. Iran and the United States remain far from reaching an agreement to end their conflict, a senior Iranian official told Reuters on Tuesday. US President Donald Trump also declined to rule out the possibility of resuming military operations following the elections. However, gold has experienced significant volatility in recent months. The precious metal declined nearly 7% in October, falling below the $4,000-per-ounce mark towards the end of the month. The correction was partly driven by investors selling gold holdings to cover losses in other assets amid a broader retreat from artificial intelligence-related investments. Gold has also fallen by more than a fifth since the US-Iran conflict erupted in late February, as rising inflationary pressures fuelled expectations of tighter monetary policy. Nevertheless, the latest recovery in gold prices has renewed buying interest in gold financing stocks, putting companies such as Muthoot Finance, Manappuram Finance and IIFL Finance in focus.