MMTC shares jump! Stock surges over 10%; how gold, silver prices at new highs are fueling the rally

MMTC Limited shares jumped sharply on Monday, rising 10.5% to Rs 71, continuing its upward momentum for the seventh straight session. Over this period, the stock has delivered gains of more than 31%, supported by a sustained rally in gold and silver prices.The stock closed at Rs 69, up 8% on the BSE and NSE. The upward momentum in MMTC followed record-breaking moves in precious metals across both domestic and global markets. Gold and silver prices have climbed to fresh highs, improving sentiment around companies linked to bullion trading and lifting expectations of higher transaction volumes. MMTC, a government-owned trading company, has a long-standing role in the import, export and domestic trade of precious metals. Its bullion operations are carried out through MMTC-PAMP India, a joint venture engaged in refining and retailing gold and silver bars and coins for investors as well as jewellery retailers, ET reported. Typically, an increase in gold and silver prices strengthens the outlook for bullion-linked businesses, as higher prices and demand can drive greater trading activity. This trend has worked in favour of MMTC during the ongoing rally in precious metals. Gold and silver have been rising sharply amid a mix of global and local factors. Investors have turned to safe-haven assets in the face of economic uncertainty and growing expectations of interest-rate cuts in major global economies. At the same time, a weaker rupee has added upward pressure on domestic bullion prices, given India’s heavy reliance on imports. Silver, in particular, has benefited from strong industrial demand from sectors such as solar energy, electric vehicles and electronics, along with tight global supply conditions, ET reported. In the futures market, both metals extended their record-setting performance. Gold February futures opened at Rs 1,40,319 per 10 grams on the MCX, up by more than Rs 400, or 0.3%. Silver continued to outperform the yellow metal, with March futures jumping Rs 14,000, or 5.7%, to a new all-time high of Rs 2,54,174 per kilogram. This marked the first time silver crossed the Rs 2.50 lakh level on the Indian futures exchange. Globally, silver prices also briefly moved past $80 per ounce before easing amid volatile trading. The ongoing rally in precious metals has boosted investor interest in bullion-related stocks, as traders bet on improved volumes and a stronger earnings outlook. This sentiment has helped MMTC shares sustain their recent momentum.