Manappuram Finance drops 3% and Muthoot Finance slides 3.5% as gold hits multimonth lows

On June 25, a sharp drop in international gold prices, driven by rising expectations of a US Federal Reserve rate hike and hawkish remarks from the new chair, pushed MCX gold futures to ₹1,40,928 per 10 grams, the lowest since March. The dollar index climbed to a more than one-year high, weighing on demand for dollar-priced gold. Several major banks cut their annual gold forecasts, with Goldman Sachs lowering its target by $500 to $4,900 per ounce. The move has stoked concerns that gold-loan lenders could face higher NPAs and weaker lending appetite.