Gold price crash: Muthoot Finance, Manappuram & gold financers tumbled up to 7% today

Shares of gold financiers and gold loan companies were seen bleeding as much as 7 per cent on Monday as the gold price tanked amid the escalating tensions between the US and Iran fuelled fresh inflation concerns and strengthened expectations of higher global interest rates globally.

Gold prices on MCX cracked nearly 6 per cent, or Rs 8,000 to slip below Rs 1,36,500 on Monday. Gold Prices have crashed more than 24 per cent from their all-time peak around Rs 1,80,000 per 10 grams hit in January 2026. In the international market, gold prices have crashed nearly 22 per cent from its all time high to $4,366.94 on Monday.

Leading the laggard, Muthoot Finance Ltd plunged nearly 6.99 per cent to Rs 3,085 on Monday, compared to its previous close at Rs 3316.65 on Friday, with its market capitalization slipping below Rs 1.25 lakh crore. The stock has corrected nearly 26 per cent from its 52-week high at Rs 4,149, hit in January 2026.

Other leading gold loan players, Manappuram Finance Ltd plunged nearly 5 per cent to Rs 247.30 during the session, with its market capitalization slipping below Rs 21,000 crore mark. The stock has plunged as much as 23 per cent from its 52-week high at Rs 320.95, hit two months ago.

South Indian Bank Ltd also lost 7 per cent to Rs 33.65, with valuation slipping below Rs 9,000 crore. Muthoot Microfin Ltd was down more than 6 per cent to Rs 141.45, while Federal Bank Ltd declined nearly 4 per cent to Rs 256.75 in the early trade. These stocks have given up around one-third of its value.

The nature of gold and its triple role of store of value, store of wealth and jewelry for Indian households severely restricts its usage as a productive asset. Loans against gold seem to be the only way to use gold in a productive manner, said Kotak Institutional Equities. "We estimate the value of stock of gold with Indian households at almost $5 trillion."

The safe-haven metal has fallen every week since the US-Israel strikes on Iran last month, pressured by rising Treasury yields, a stronger dollar, and profit-taking as investors liquidated positions to offset losses elsewhere MCX gold tumbled over 8 per cent last week, settling below the 9-week EMA on the weekly charts, which is a bearish signal for prices, said Axis Securities.

"The momentum indicator RSI slipped below the 60 level, suggesting strong downside momentum. We expect gold to trade with a negative bias as long as the Rs 1,52,000 level, which aligns with the 9-week EMA, holds on the upside. A 'sell on rallies' strategy is recommended in the near term," it said.