MMTC share price jumped over 8% in early trade on Thursday, led by strong buying volumes, amid a surge in gold and silver prices. The PSU stock rallied as much as 8.69% to Rs 67.50 apiece on the BSE.
The gained in MMTC share price also came amid robuy trading volumes. Around 3 crore equity shares of MMTC changed hands on stock exchanges, significantly higher than its one week average trading volumes of 10 lakh shares and one month average volumes of 15 lakh shares.
The state-run MMTC is a commodity trading company, operating across the import, export, and domestic trade of precious metals. Strong gold and silver prices and rising market activity tend to benefit MMTC.
When gold and silver prices rise, the value of metals handled increase, while higher trading environment usually leads to higher volumes for MMTC.
Gold has been in focus in global markets, with spot prices holding near their highest level since early June, supported by the decline in US Treasury yields and a weaker dollar. Spot gold price was at $4,512.19 an ounce, while silver rose 0.2% to $67.06 an ounce
Also Read: Gold Holds Near $4,500 As US Treasury Buyback Sends Yields Lower
Gold, Silver Prices On MCX
Domestic bullion prices have also remained elevated as well. MCX gold rate for October futures contract was up by Rs 304, or 0.19%, at Rs 1,58,300 per 10 grams. MCX silver price for September contract surged by Rs 3,012, or 1.27% to Rs 2,39,799 per kg.
The firm trend in precious metals comes as global markets assess movements in bond yields, the US dollar, and expectations around monetary policy.
MMTC's Precious Metals Business
Precious metals are part of MMTC's business operations. MMTC's exposure to bullion makes the precious-metals market an important area for investors tracking the stock.
However, a rise in gold and silver prices does not automatically translate into a similar increase in MMTC's earnings, as the company's performance is also influenced by trading volumes, margins, and other business segments.
MMTC Stock Performance
The latest rally adds to MMTC's longer-term gains. MMTC share price has jumped 76% in the past three years, while over the past month, it has gained more than 5%. The PSU stock has gained more than 58% in five years.
At 10:25 AM, MMTC share price was trading 6.10% higher at Rs 65.89 apiece on the BSE.
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