As gold rate rises, should you sell, hold or buy?

In August 2026, gold prices on the Commodity Exchange of India (MCX) surged by 13.51%, or Rs 19,212 per 10 gram. Over the past 10 days, the price rose by 4.63%, or Rs 7,103 per 10 gram. This rapid increase has sparked optimism among long-term investors. Those who bought gold during price dips are pleased to see their investments increase in value. However, those who bought at the peak are waiting for the rally to continue and surpass the previous record of Rs 1,75,231/10g set in January 2026.

For investors with gold investments of one year or more, positive returns have been observed. According to Kotak Gold ETF data, the fund has delivered around 37% return over one year and 44% over three years. With lump sum returns, the ETF has provided 59% over one year and 39% over three years.

So, what should investors do next? Should they sell, hold or buy more gold? Commodity experts advise investors who bought gold at its peak to avoid panic selling and instead average their purchase price by adding smaller amounts during price dips. Investors who have experienced a gold price rally are advised to hold their investments for three to five years, rather than days, as gold's larger drivers such as debt, geopolitical tension and central-bank buying remain strong.

Those who bought gold 10 years ago should consider booking some profits and leaving the rest of their investment in the ETF.