Muthoot Finance, Manappuram shares rise up to 4.2% as gold reaches two-week high

Muthoot Finance, Manappuram and IIFL Finance shares rose on November 5 as gold prices climbed nearly 2% to a two-week high, with Muthoot Finance up 4.2% at 11:45 AM IST. Manappuram shares gained 3.7% and IIFL Finance shares were nearly 2% higher at the same time. The share moves followed gold's recovery above $4,000, supported by a weaker US dollar and lower US Treasury yields.

Muthoot Finance shares rise 4.2% at 11:45 AM IST

Share-price data showed Muthoot Finance shares trading 4.2% higher at 11:45 AM IST on November 5.

Manappuram shares rise 3.7% at 11:45 AM IST

Manappuram shares were trading 3.7% higher at 11:45 AM IST on November 5, according to share-price data.

IIFL Finance shares nearly 2% higher at 11:45 AM IST

Share-price data showed IIFL Finance shares trading nearly 2% higher at 11:45 AM IST on November 5.

Spot gold reaches $4,134.83 per ounce

Spot gold market data showed a 1.9% rise to $4,134.83 per ounce by 8:46 AM IST on November 5, taking the metal to its highest level since October 22. The move came as a weaker US dollar and lower Treasury yields supported gold.

US gold futures for December delivery rose 1.8% to $4,144.20 on November 5. Linh Tran, market analyst at XS.com, said gold's recovery above $4,000 had been helped by the weaker dollar and lower yields, but that holding above $4,000 remained crucial to the recovery outlook.

The US dollar fell after Democrats won the US midterm elections. US Treasury market data showed the 10-year Treasury yield had declined 6 basis points overnight and a further basis point in early Tokyo trading, reaching 4.87%.

Bullion remains down by more than a fifth since late February

Market data showed bullion remained down by more than a fifth from its level when the US-Iran war began in late February. The market context linked the earlier decline to higher energy prices, which contributed to tighter monetary policy.

Market participants were awaiting Friday's US nonfarm payrolls report for clues about the direction of the economy and interest rates. The report was also being watched for information on the Federal Reserve's monetary policy outlook.

Tran said gold could stabilise above $4,000 if investment flows and yield movements continued to support it.