Gold has extended a strong multi-year uptrend, prompting investors to revisit their asset allocation as equity markets remain volatile. For many clients, the question is not whether gold has risen, but how it should fit into long-term portfolios.
As of 9 December 2025, gold on MCX traded at ₹1,29,460 per 10g, up 6.72% over the past month. One-year returns stand at 68.65%, and three-year gains total 138.7%. A ₹1 lakh investment three years ago would be worth roughly ₹2.38 lakh today.
Gold Price Snapshot (as of 9 December 2025)
| Period | Return |
| 1-month change | 6.72% |
| 1-year return | 68.65% |
| 10-year CAGR | 17.8% |
| 10-year absolute return | +414% |
Gold has risen from ₹25,235 per 10g in December 2015 to current levels, reflecting a 414 % absolute increase over ten years.
What is Supporting Gold Prices?
From a financial-planning perspective, gold’s rise continues to be linked to global macro conditions:
- changes in US Federal Reserve interest-rate policy
- movements in real yields
- US dollar fluctuations
- increased central-bank buying
- persistent geopolitical uncertainty
These factors reinforce gold’s traditional role as a risk-hedging asset in diversified portfolios. While periods of higher real yields may limit short-term upside, long-term demand remains supported by its safe-haven function.
Should Clients Enter at Current Levels?
Most market experts continue to advise an accumulate-on-dips approach, not aggressive buying at peaks.
For long-term investors, the key is measured allocation, not timing.
Expert views emphasise:
- accumulation during corrections
- disciplined exposure rather than short-term trades
- maintaining gold as part of overall risk management
Choosing the Right Investment Format
Physical Gold
- meets cultural requirements
- includes making charges and storage risks
Gold ETFs
- liquid, transparent and cost-efficient
- suitable for financial portfolios
Sovereign Gold Bonds (SGBs)
- carry sovereign backing
- offer annual interest
- capital gains exemption on maturity for individuals
- generally most tax-efficient for long-term holdings
SIP or Lump Sum?
- SIP in gold ETFs helps average cost and reduce timing risk.
- Lump sum may suit investors with long horizons and the ability to withstand volatility.
How Much Allocation is Appropriate?
Financial planners generally recommend:
- 8-12% for conservative investors
- 5-8% for aggressive portfolios
Gold helps cushion drawdowns during uncertain cycles but should not dominate the portfolio.
Outlook for Clients
Gold continues to act as a dependable hedge during global uncertainty. For clients, the focus should be:
- disciplined allocation
- choosing the most tax-efficient format
- avoiding short-term speculation
- integrating gold within long-term financial plans