Gold Loan Lenders Surge as Bullion Prices Hit Record Highs, Jewellery Makers Face Headwinds

Gold prices have reached record highs, surpassing Rs 1.09 lakh per 10 grams domestically and $3,700.00 per troy ounce internationally, marking a 32% increase in dollar terms. This surge has created contrasting fortunes in the gold sector. Gold loan companies like Manappuram Finance and Muthoot Finance are thriving, trading near all-time highs due to increased collateral values and reduced default risks. Conversely, jewellery makers face challenges with cooling demand. Titan Company has shown resilience with 19.3% growth in jewellery revenue, while Kalyan Jewellers appears more vulnerable, with its stock 36% below its peak.