Gold price is rising again: Should you sell, hold or buy more? Experts explain

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.


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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?

MCX gold spot price in August showing daily up/down

Date	Gold price (₹/10g)	Daily Up/Down	Daily change (%)
26-Aug-26	₹ 1,60,620	− ₹563	−0.35%
25-Aug-26	₹ 1,61,183	− ₹233	−0.14%
24-Aug-26	₹ 1,61,416	₹ 1,898	1.19%
21-Aug-26	₹ 1,59,518	₹ 2,947	1.88%
20-Aug-26	₹ 1,56,571	₹ 3,759	2.46%
19-Aug-26	₹ 1,52,812	− ₹710	−0.46%
18-Aug-26	₹ 1,53,522	₹ 5	0.00%
17-Aug-26	₹ 1,53,517	₹ 2,009	1.33%
14-Aug-26	₹ 1,51,508	− ₹367	−0.24%
13-Aug-26	₹ 1,51,875	− ₹933	−0.61%
12-Aug-26	₹ 1,52,808	₹ 1,069	0.70%
11-Aug-26	₹ 1,51,739	₹ 1,389	0.92%
10-Aug-26	₹ 1,50,350	₹ 1,318	0.88%
07-Aug-26	₹ 1,49,032	₹ 882	0.60%
06-Aug-26	₹ 1,48,150	₹ 3,451	2.38%
05-Aug-26	₹ 1,44,699	₹ 2,495	1.75%
04-Aug-26	₹ 1,42,204	₹ 83	0.06%
03-Aug-26	₹ 1,42,121	− ₹98	−0.07%

Kotal gold ETF’s SIP returns and value of Rs 10,000 monthly SIP investment in 1-15 years

Investment period (Years)	Total investment (at Rs 10,000/month)	Value of Rs 10,000 monthly SIP investment	XIRR
1	₹ 1.20 lakh	₹ 1.53 lakh	36.81%
2	₹ 2.40 lakh	₹ 3.70 lakh	47.94%
3	₹ 3.60 lakh	₹ 6.72 lakh	43.89%
4	₹ 4.80 lakh	₹ 9.98 lakh	38.37%
5	₹ 6.00 lakh	₹ 13.82 lakh	33.82%
6	₹ 7.20 lakh	₹ 17.62 lakh	29.66%
7	₹ 8.40 lakh	₹ 21.91 lakh	26.81%
8	₹ 9.60 lakh	₹ 27.56 lakh	25.47%
9	₹ 10.80 lakh	₹ 33.51 lakh	24.01%
10	₹ 12.00 lakh	₹ 39.51 lakh	22.49%
11	₹ 13.20 lakh	₹ 45.71 lakh	21.10%
12	₹ 14.40 lakh	₹ 52.17 lakh	19.87%
13	₹ 15.60 lakh	₹ 58.19 lakh	18.61%
14	₹ 16.80 lakh	₹ 63.95 lakh	17.44%

Kotal gold ETF’s lump sum returns and value of Rs 1,00,000 investment in 1-15 years

Investment period (Years)	Value of Rs 1 lakh lump sum investment	CAGR
1	₹ 1.59 lakh	59.27%
2	₹ 2.21 lakh	48.90%
3	₹ 2.67 lakh	38.66%
4	₹ 2.97 lakh	31.31%
5	₹ 3.25 lakh	26.57%
6	₹ 2.92 lakh	19.70%
7	₹ 3.88 lakh	21.38%
8	₹ 5.09 lakh	22.56%
9	₹ 5.11 lakh	19.88%
10	₹ 4.61 lakh	16.50%
11	₹ 5.31 lakh	16.38%
12	₹ 5.18 lakh	14.69%
13	₹ 4.51 lakh	12.28%
14	₹ 4.51 lakh	11.36%
15	₹ 5.37 lakh	11.85%

Should investors 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.

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Expert advice for investors who bought gold at its peak rate

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.

Suggestions for investors who enjoyed gold price rally

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.

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What should investors who bought gold 3 years back do?

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.

What should investors who bought gold 10 years ago do?

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.