In August 2026, gold prices on the MCX saw a substantial rally, providing significant profits for numerous investors. While those who purchased at record highs are eager for further price hikes to recoup their costs, experts recommend that long-term holders maintain their positions in gold. Additionally, for seasoned investors, a strategy of partial profit-taking is advisable.
Gold prices on the Commodity Exchange of India (MCX) witnessed a surge in August 2026, soaring by 13.51%, or Rs 19,212 per 10 gram. Over the last 10 days alone, the price has gone up by 4.63%, or Rs 7,103/10 gram.
Such a sharp rally in such a short time has renewed optimism among long-term investors who have been eager to cash in on profits or rebalance their portfolios. Those who bought gold in dips are happy to see the value of their investments rise. On the other hand, buyers who bought gold at its peak are desperately waiting for the rally to continue and surpass the record of Rs 1,75,231/10g set on January 29, 2026, on the MCX.
The silver lining is that many gold investors with investments of one year or older have seen positive returns from their investments.
According to the systematic investment plan (SIP) data of Kotak gold exchange traded fund (ETF), which is among the top ETFs over the last decade and tracks physical gold prices, the fund has delivered around 37% return (XIRR) over one year and 44% over three years.
As far as Kotak Gold ETF’s lump sum returns (CAGR) are concerned, the ETF has delivered 59% return over one year and 39% over three years.
With gold investors experiencing different outcomes based on their investment timelines, what should they do next? Should they sell, hold or buy more gold?
Commodity experts spoke to ET Wealth Online about investors who had bought gold in different time frames- such as at its peak, at a low point, three years back and 10 years back.
Since such investors may be in a panic situation with their investments yet to recover, the advice of Prithviraj Kothari, managing director at RiddiSiddhi Bullions Ltd., and president of India Bullion and Jewellers Association Ltd. (IBJA), is not to panic and avoid selling at a loss out of anxiety.
“Gold is fundamentally a long-term asset, not a short-term trade. View this as an opportunity to average your purchase price by adding smaller amounts during dips, if your financial situation allows,” says Kothari.
Such investors must be finding themselves lucky specially at a time when the share market has given modest returns in the last two years.
For investors who enjoyed the gold price rally, Divya Mandaliya, commodity research analyst, Anand Rathi Share and Stock Brokers, advises against buying more at these levels. She also says selling out of fear that the prices may dip in the future might not be the best strategy either.
“Hold on and keep the long view of three to five years, not three to five days. Gold’s larger drivers debt, geopolitical tension, and central-bank buying remain firmly in place,” opines Mandaliya.
Such investors have literally seen their investments surge to a 170% rally as gold was priced at Rs 59,500 in August 2023. For such investors, Kothari says that if gold exceeds their ideal portfolio allocation, typically 10-15%, trim modestly and redirect elsewhere. “If it's within range, staying invested makes sense given ongoing global uncertainty and rate-cut expectations supporting prices,” says Kothari.
Looking at the Kotak Gold ETF data, an investor who started a Rs 10,000 monthly SIP 10 years ago has built an approximately Rs 39.51 lakh corpus from their investment.
An investor with a Rs 1 lakh investment in the ETF 10 years ago has seen it grow to approximately Rs 5.37 lakh at a Compound Annual Growth Rate (CAGR) of 11.85% in that time frame.
For such investors, Mandaliya suggests booking some profits and leaving the rest of the investment in place to keep doing its job.
“Ten years of compounding deserves a smart finish, not a rushed one,” says Mandaliya.
Kothari advises considering booking partial profits to rebalance into other assets, while retaining a core holding as a long-term hedge against inflation and currency depreciation.
“Gold's structural demand story, from central bank buying to geopolitical uncertainty, remains intact, so full exit isn't necessary. Staggered profit-booking suits your position better than a lump-sum decision,” says Kothari.
