MMTC shares decline 5% as gold, silver prices cool off from record levels
Shares of MMTC Ltd fell 4.88% to Rs 67.21 on Tuesday as gold and silver prices retreated from recent highs. The government-owned bullion trader’s performance is closely linked to precious metal trends, with profit-taking and year-end volatility contributing to the stock’s decline, despite a morning rebound in metals.
Shares of MMTC Ltd declined sharply on Tuesday, falling 4.88% to hit a day’s low of Rs 67.21 on the BSE, as gold and silver prices retreated from their recent peaks in both domestic and global markets.
The dip in bullion prices weighed on market sentiment for bullion-linked companies, including MMTC, which has a significant presence in the trading of precious metals.
MMTC Limited is a government-owned enterprise that operates in the bullion segment through its joint venture MMTC-PAMP India, which is involved in the refining and retailing of gold and silver bars and coins.
The company's performance is often seen moving in tandem with the broader trends in gold and silver prices, as higher prices can drive investor interest and increase trading volumes.
The fall in MMTC shares comes after both gold and silver saw a sharp pullback following a recent rally to record highs. The cooling off in prices is being attributed to profit-taking activity and year-end volatility in the commodities markets.
Earlier, prices of both metals had surged due to a combination of safe-haven demand, a weakening rupee, and expectations of interest rate cuts globally.
Silver, in particular, had seen additional support from strong industrial demand across sectors such as solar energy, electric vehicles, and electronics. However, the recent softness in prices has dragged down related stocks.
However, despite the recent dip, gold and silver prices opened in the green on Tuesday. Gold February futures were trading at Rs 1,35,775/10 grams, higher by Rs 833, while silver prices climbed by Rs 9,213 to trade at Rs 2,33,642/kg around 10:30 am.
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