Gold Rally Lifts Titan, Muthoot Finance and P N Gadgil as MCX Prices Hit Record Highs
- 7th October 2025
- 05:00 PM
- 3 min read
Summary
Gold price in India hit an all-time high today, with MCX gold futures climbing to ₹1,20,900 per 10 grams. The surge comes as investors seek safety amid global uncertainty, a prolonged US government shutdown, and expectations that the Federal Reserve may cut rates — keeping gold firmly in demand.Mumbai | October 7
Gold prices continued their upward march on Tuesday, supported by safe-haven demand and expectations of a shift in global monetary policy.
Gold futures with December 2025 expiry climbed ₹651, or 0.54%, to ₹1,20,900 per 10 grams on the Multi Commodity Exchange (MCX) — the highest level ever recorded. Contracts for February and April 2026 also touched lifetime highs of ₹1,22,231 and ₹1,23,685 per 10 grams, respectively.
Silver remained steady, trading close to its record high of ₹1,47,800 per kilogram, extending gains from Monday’s session.
Globally, Comex gold futures for December delivery breached the crucial $4,000 per ounce mark for the first time. Analysts attribute the rally to a combination of factors — the prolonged US government shutdown, delayed release of key macroeconomic data, and rising expectations that the US Federal Reserve may begin rate cuts earlier than anticipated.
Jewellery Stocks Gain Amid Bullion Rally
Shares of jewellery companies traded mixed in early deals as investors assessed the impact of higher gold prices ahead of the festive season.
| Company | Price (₹) | Change (%) |
| Titan Company | 3,442 | +0.5 |
| Kalyan Jewellers | 487 | +0.3 |
| P N Gadgil Jewellers | 651.9 | +2.7 |
| Senco Gold | 348.25 | –1.0 |
| PC Jeweller | 12.95 | –0.8 |
Rising gold prices increase the valuation of jewellers’ inventories and often help maintain revenue even when sales volumes dip. However, persistent highs can discourage discretionary buying, leading consumers to opt for lighter or designer jewellery that offers better margins.
Organised players such as Titan Company and Kalyan Jewellers are likely to benefit from this trend, given their strong brand positioning and diversified product ranges ahead of the festive season.
Gold Financiers Benefit from Higher Collateral Value
Gold loan providers Muthoot Finance and Manappuram Finance saw modest gains in trade. Muthoot rose 0.3% to ₹3,236.6, while Manappuram added 0.6% to ₹292.5. Higher gold prices raise the loan value against pledged collateral, improving disbursements and profitability. However, sharp corrections in gold prices can affect recovery ratios and may invite tighter lending norms from the Reserve Bank of India (RBI).
Macro Drivers Behind the Rally
The rally in gold prices is supported by expectations of rate cuts from the US Federal Reserve, sustained central bank buying, and the delay of key economic data releases caused by the US government shutdown. Geopolitical tensions and a weaker dollar have also supported safe-haven demand, extending the metal’s gains for a third consecutive week.
Outlook
Gold prices are expected to stay firm in the near term, supported by strong central bank demand and the start of the festive season in India. While volatility may persist, analysts believe the underlying trend remains positive for both gold and gold-linked stocks.
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