Gold loan stocks correct as bullion cools off from record highs

Shares of gold loan companies slipped on Thursday as gold prices extended their decline from record levels amid profit booking in global bullion markets.

Muthoot Finance dropped 4.43%, while Manappuram Finance fell 2.15%.

The weakness in gold prices, which dipped toward the $4,000-an-ounce mark globally, typically pressures gold financiers as collateral values shrink, affecting lending margins.

The steep decline in gold prices is driven by profit-taking, a stronger U.S. dollar, easing geopolitical tensions, and optimism around U.S.-China trade talks. Despite the recent pullback, gold remains up about 55% so far this year.

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