Shares of gold loan financiers came under pressure on Monday, March 23, as a sharp decline in bullion prices dampened investor sentiment across the sector. Stocks of Manappuram Finance and Muthoot Finance fell over 5 per cent during morning trade, mirroring weakness in gold prices.

Manappuram Finance Ltd. shares declined 3 per cent on the BSE at 9.59 am, trading at ₹251.35 after touching an intraday low of ₹249.50 compared to the previous close of ₹259.20.

Muthoot Finance Ltd. dropped more sharply, falling over 5 per cent to an intraday low of ₹3,138 from its previous close of ₹3,316.65. CSB Bank Ltd. also witnessed selling pressure in early deals amid the broader weakness in gold-linked counters.

Bullion slides as macro pressures outweigh safe-haven demand

Gold prices have come under strain due to changing global market dynamics that have reduced the metal’s appeal as a defensive asset. Market experts observed that despite persistent geopolitical tensions, bullion has struggled to retain its traditional safe-haven status in the current macroeconomic environment, prompting traders to trim exposure to gold-backed assets.

MCX gold fell 5 per cent and MCX silver depreciated 6 per cent, as global macroeconomic pressures overshadowed safe-haven buying amid persistent geopolitical tensions, Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted.

Analysts said a firm US dollar, elevated treasury yields and surging crude oil prices have dampened investor sentiment, while profit-booking after the recent rally added to selling pressure. Inflation concerns have also strengthened expectations that interest rate cuts may be delayed, reducing the appeal of non-yielding precious metals.

“Profit-taking and liquidity needs have also triggered selling after metals’ earlier rally, with investors cashing out to cover losses elsewhere,” said Hareesh V, Head of Commodity Research at Geojit Investments Limited.

Aamir Makda added that bullion opened sharply lower and may remain under pressure for a fourth straight week as inflation risks and rate hike expectations weigh on sentiment. He added that gold and silver are trading below key short-term moving averages, with major support seen near their 200-DEMA levels, and a breach could accelerate the ongoing decline.

The weakness extended beyond lenders to jewellery retailers as well. Shares of Kalyan Jewellers, Thangamayil Jewellery, P N Gadgil Jewellers and Sky Gold and Diamonds declined by up to 5 per cent.

Analysts said investor mood remains cautious as bullion trends continue to dictate price action across gold-linked financial and retail counters, with volatility likely to persist if global cues remain uncertain.

Published on March 23, 2026