Gold soars past Rs 1 lakh, boosting Manappuram and Muthoot Finance; jewellery stocks dip

Gold prices surged to record highs on Friday as escalating tensions between Israel and Iran pushed investors towards safe-haven assets. On the Multi Commodity Exchange, gold futures for the August 5, 2025 contract jumped by Rs 2,011 to touch a day’s high of Rs 1,00,403 per 10 grams. This is the first time Indian gold prices have crossed the Rs 1 lakh mark.

The surge came amid reports of Israeli strikes on Iranian nuclear sites and fears of a wider conflict. A weakening rupee, which slipped 6 paise to Rs 86.10 against the US dollar, also contributed to the 2 per cent gain in domestic gold prices.

Gold Financer Stocks in Focus

1) Stocks of non-banking financial companies that offer loans against gold jewellery witnessed strong gains

2) Manappuram Finance rose 1.83 per cent to Rs 275.45 after hitting an all-time high of Rs 278.25 during the session

3) Muthoot Finance gained 1.36 per cent to trade at Rs 2,586.80 with an intraday high of Rs 2,594. Overall, gold financer stocks rose up to 3 per cent as rising gold prices enhance the value of collateral, reduce credit risk and increase loan disbursement potential.

Jewellery Stocks Under Pressure

On the other hand, jewellery-related stocks came under selling pressure. PC Jeweller fell 2.46 per cent. Titan slipped 0.59 per cent. Senco Gold declined 0.87 per cent. Kalyan Jewellers was down 0.96 per cent.

Jewellery stocks dropped up to 3 per cent as analysts pointed to the likelihood of softer consumer demand. Rising gold prices often discourage discretionary purchases, especially in India’s price-sensitive market, and may impact sales volumes and profitability.

Outlook

With geopolitical tensions unlikely to ease immediately, gold prices may remain elevated. While gold financiers are expected to benefit in the near term, jewellery companies could continue to face pressure if prices stay above consumer comfort levels.