Titan Co, P N Gadgil, Manappuram: How gold-related stocks are faring and what lies ahead amid gold's unstoppable rally

On Tuesday, October 7, in the domestic market, gold prices jumped ₹651 to hit a fresh peak of ₹1,20,900 per 10 grams in the domestic futures market, buoyed by strong global cues amid the prolonged US government shutdown and growing bets of rate cuts by the Federal Reserve at its upcoming meeting.

On the Multi Commodity Exchange (MCX), the yellow metal futures for December delivery appreciated by ₹651, or 0.54%, to hit a record high of ₹1,20,900 per 10 grams.

The February 2026 contract for gold futures increased by ₹648, or 0.53%, to hit a lifetime high of ₹1,22,231 per 10 grams.

Meanwhile, silver futures gained ₹281, or 0.19%, to trade near their record high of ₹1,47,800 per kilogram. The white metal had hit its peak of ₹1,47,977 per kg on Monday.

The March 2026 contract for silver futures advanced ₹327, or 0.21%, to ₹1,49,500 per kg, after touching a lifetime high of ₹1,49,605 per kilogram in the previous session.

Globally, Comex gold futures for December delivery breached the key $4,000 per ounce mark for the first time by rising nearly 1% on Tuesday.

However, silver futures for December delivery were quoted marginally lower at $48.43 per ounce.

The ongoing US government shutdown, analysts note, has disrupted key federal programmes and delayed the release of crucial economic data, including the September jobs report. The absence of official US macroeconomic indicators, coupled with rising expectations of two Federal Reserve rate cuts this year, has further strengthened demand for the yellow metal.

"Additionally, sustained gold buying by global central banks also continues to power the record rally in the precious metal prices," PTI reported, quoting an expert.

Jewellery companies

Jewellery companies such as Titan Company, Senco Gold, PC Jeweller, Kalyan Jewellers, and P N Gadgil, among others, are in the spotlight amid the meteoric rally in gold prices and the festive season.

Rising gold prices have significant and mixed impacts on gold jewellery companies.

Among positives, these companies hold gold as inventory, and as gold prices rise, the value of this inventory increases, improving balance sheets in the short term. Besides, even if the volume of gold sold decreases, the revenue may still grow or remain stable due to higher per-gram prices.

Additionally, consumers tend to shift to lightweight or designer jewellery in high-price scenarios, which often carry better margins.

On the flip side, high gold prices can discourage purchases, especially during non-festival or non-wedding seasons. Price-sensitive customers may postpone buying or buy lower quantities. Further, higher gold prices mean more capital is needed to maintain the same inventory levels. This increases the need for short-term borrowing, raising interest costs, explain analysts.

Consumers may turn to gold ETFs, digital gold, or recycled gold instead of new jewellery.

To sum up, elevated gold prices for a long period may have adverse impacts on jewellery companies; however, given the recent Q2 business updates by most companies, the festive season and the consumption boost in the form of GST rate reduction and nil income tax up to ₹12,00,000 are likely to support the companies in the near-to-medium term.

Gold financiers (Muthoot Finance, Manappuram Finance)

Among the positives, as gold prices rise, the same quantity of pledged gold fetches a higher loan amount. This can increase loan disbursements and revenue.

Besides, borrowers holding gold are more inclined to pledge it when prices are high, boosting loan growth.

On the other hand, high gold prices today increase the systemic risk if prices fall tomorrow. Also, the RBI often tightens norms when prices are volatile.

How gold-related stocks are performing

At the time of writing this article, shares of Titan Company were trading 0.5% higher at ₹3,442 apiece on the NSE, while Senco Gold was down over 1% at ₹348.25. PC Jeweller shares were trading over 0.8% lower at ₹12.95 apiece, and Kalyan Jewellers was up 0.32% at ₹487. P N Gadgil Jewellers was trading 2.66% higher at ₹651.90 on the NSE.

Among gold financiers, Muthoot Finance was trading at ₹3,236.60, up 0.28%, and Manappuram Finance was up 0.6% at ₹292.50 on the NSE.