Shares of MMTC Limited jumped 10.5% to an intraday high of Rs 71 on Monday, extending a seven-day winning streak. The stock has gained over 31% during this period, supported by rising gold and silver prices, which have lifted trading volumes and sentiment for bullion-linked firms such as MMTC.

The sharp rise in MMTC shares comes amid a strong rally in gold and silver prices, which have touched fresh record highs in both domestic and international markets.

MMTC Limited is a government-owned trading enterprise with a significant presence in the import, export and domestic trading of precious metals, including gold and silver. The company operates in the bullion segment through its joint venture, MMTC-PAMP India, which refines and retails gold and silver bars and coins for investors and jewellery retailers.

A rise in gold and silver prices typically improves business prospects and market sentiment for bullion-linked companies like MMTC, as higher prices and demand can translate into increased trading volumes.

Gold and silver prices have been climbing sharply due to a combination of global and domestic factors. Investors have increased safe-haven buying amid economic uncertainty and expectations of interest-rate cuts in major global economies. A weaker rupee has also pushed up domestic bullion prices, as India relies heavily on imports.

Silver has received additional support from strong industrial demand, particularly from sectors such as solar energy, electric vehicles and electronics, along with tight global supply conditions.

On Monday, gold and silver extended their record-setting run in the futures market. Gold February futures opened at Rs 1,40,319 per 10 grams on the MCX, rising over Rs 400, or 0.3%, from the previous close.

Silver once again outperformed gold. Silver March futures surged by Rs 14,000, or 5.7%, to hit a fresh all-time high of Rs 2,54,174 per kilogram, marking the first time silver crossed the Rs 2.50 lakh mark in the Indian futures market.

Internationally, silver also drew attention as prices briefly crossed USD 80 per ounce before retreating amid volatile trading.

The rally in precious metals has boosted investor sentiment towards bullion-related stocks, with traders betting on higher volumes and an improved earnings outlook. This sentiment-driven momentum has helped MMTC shares extend their strong upward move over the past several sessions.

On the technical front, the 14-day Relative Strength Index (RSI) for MMTC stands at 67.1. Typically, an RSI below 30 indicates oversold conditions, while a reading above 70 signals overbought territory. At current levels, the stock is approaching overbought conditions but has not crossed the threshold yet.

MMTC also shows strong bullish momentum, trading above all eight key Simple Moving Averages (SMAs), from the 5-day SMA to the 200-day SMA, indicating strength across short-, medium- and long-term trends.