Gold Prices Surge Again: Global Rally Sparks Fresh Debate—Should You Buy, Sell, or Hold?

Gold prices are once again on the rise after a brief period of decline, reigniting investor interest both in India and abroad. Following a nearly 9% correction from record highs in October, the yellow metal has regained momentum, driven by a weakening U.S. dollar and growing global economic uncertainties. Analysts suggest that despite short-term volatility, the long-term outlook for gold remains positive, making it an essential part of any diversified investment portfolio.

Gold Prices Rebound After Recent Dip

On November 6, both domestic and international gold markets witnessed a sharp uptrend.

• Spot gold rose 0.4% to $3,996.19 per ounce,

• U.S. gold futures climbed 0.3% to $4,005.60 per ounce, and

• On MCX (Multi Commodity Exchange), gold futures jumped ₹911 (0.76%) to ₹1,21,433 per 10 grams around 2:07 PM.

Just a few weeks ago, on October 20, gold prices had touched a record high of $4,381.21 per ounce before falling nearly 9%. The current rebound is largely attributed to the decline in the U.S. dollar, which recently slipped from its four-month high amid concerns over America’s prolonged government shutdown—the longest in U.S. history—raising fears of economic slowdown.

Why Gold Is Rising Again

The rally in gold is primarily being supported by global macroeconomic conditions. The weakening of the dollar generally boosts gold demand, as the precious metal becomes cheaper for investors holding other currencies.
Additionally, central banks’ continued gold purchases, currency market fluctuations, and economic uncertainty have reinforced gold’s position as a safe-haven asset.

Samit Guha, MD and CEO of MMTC-PAMP, noted,

“We expect strong support for gold over the next 6–8 months. The demand will be influenced by central bank buying, currency movements, and festive as well as wedding-season purchases in India.”

Long-Term Outlook: Gold Remains a Safe Investment

Experts believe that the long-term outlook for gold remains bullish, despite short-term ups and downs. Historically, gold has served as a reliable hedge against inflation and currency depreciation.
Even though prices had corrected after reaching record levels, analysts view this as a natural market adjustment, not a long-term reversal.

Guha further explained that investors fall into two categories:

1. Long-term investors, who consistently buy gold regardless of price movements.

2. Tactical investors, who prefer to buy during price corrections.

Both approaches, he says, reflect growing confidence in gold as a store of value.

How Much Gold Should You Hold in Your Portfolio?

Financial advisors recommend allocating 10–15% of your investment portfolio to gold.
This allocation offers portfolio diversification and helps reduce risk during stock market downturns.
When equity markets experience sharp declines, gold prices often remain stable or move higher, acting as a buffer against losses.

Investment experts also suggest not limiting yourself to physical gold. Instead, consider Gold ETFs, Sovereign Gold Bonds (SGBs), or Gold SIPs (Systematic Investment Plans), which offer easier liquidity, better transparency, and reduced storage concerns.

Investment Strategy: Buy, Sell, or Hold?

• If your portfolio already has sufficient gold exposure (10–15%), you may book partial profits during price surges.

• If your gold allocation is below this level, consider adding more during dips to achieve optimal diversification.

• New investors who cannot make lump-sum investments should opt for SIPs in gold ETFs or mutual funds to accumulate gradually over time.

This strategy ensures a balanced exposure that aligns with long-term financial goals while minimizing risk.

Bottom Line

Gold continues to glitter as a safe and reliable investment, especially amid global uncertainties and currency fluctuations. Although prices may fluctuate in the short term, experts agree that the overall sentiment remains positive.

For investors seeking stability, diversification, and long-term protection against inflation, holding a measured portion of gold remains a smart financial move—not just for the present rally but for future financial resilience as well.