Gold Prices Today: Gold has emerged as the standout asset of 2025, delivering an eye-catching return of more than 40% and outpacing Nifty 50‘s modest rise of 9.5%. The scale of this outperformance has brought gold—traditionally seen as a safe-haven asset—firmly back into investor conversations.
Escalating geopolitical risks in Eastern Europe and the Middle East have kept uncertainty elevated for months. Meanwhile, the US Dollar has weakened almost 8% against major global currencies in the past year, lifting commodity prices and creating a tailwind for precious metals. The combination of safe-haven demand and currency-driven price strength has boosted demand for gold.
Moreover, strong central bank buying has emerged as another impetus for the gold price rally.
This backdrop has left investors questioning the right asset mix: Should they chase momentum in gold or stick with equities for long-term wealth creation?
Gold is strong — but enough to replace equities?
Across the board, analysts stressed that while gold offers protection and near-term stability, equities remain the superior long-term compounder. Their views differed in nuance, but their message aligned: gold is a hedge, not a substitute.
Rajesh Palviya, SVP – Research at Axis Securities, said the current price strength is well-supported. He believes the increase in gold prices has been supported by central bank purchases, trade tensions, and expectations of lower interest rates, positioning gold as a preferred hedge against uncertainty and inflation.
However, he added that although gold has provided better risk-adjusted returns and stability compared to equities in the short term, equities have historically offered higher long-term growth, particularly in markets like India.
Narendra Kumar, Sr. Vice President – Investment Banking at SPA Capital, echoed the same principle, emphasising tactical—not aggressive—gold exposure.
“Gold offers effective protection amid global uncertainty and potential rate cuts, improving portfolio stability. However, India’s earnings outlook and domestic growth drivers continue to support equities as a stronger long-term return asset. A balanced mix—equities for growth and gold for risk mitigation—provides the best risk-adjusted outcome.”
Meanwhile, from a portfolio construction view, Nilesh D. Naik, Head of Investment Products at Share.Market, noted that investors often chase recent performance, which could distort long-term allocation discipline.
He said gold inflows have surged but warned against over-allocating purely on recent momentum. Equities, he emphasised, must remain the core of a long-term portfolio, with gold serving as a complementary diversification tool and inflation hedge.
What should investors do now? The allocation playbook
Experts agreed that diversification remains essential. Palviya of Axis Securities suggested that to achieve optimal risk-adjusted returns, investors should diversify their portfolios. It is important to maintain a measured allocation to gold for stability while favouring equities for potential long-term wealth creation.
Furthermore, Narendra Kumar of SPA Capital provided a structured framework for investors looking for clarity on allocations. Kumar said the precious metals cycle remains far from over.
“The silver–gold bull market that began in 2023 remains intact and is likely to continue through 2029–2030, making it a structural multi-year cycle rather than a short-term trade,” he explained.
2023–2025: Overbought Allocation Phase — investors held elevated 30–50% gold exposure to capture the major breakout.
2025–2030: Controlled Allocation Phase — as the cycle consolidates, a balanced 5–2% allocation becomes appropriate.
“For passive, long-term investors, 20–25% remains comfortable,” he said.
However, he cautioned that allocations beyond 30% are strictly for those who can tolerate higher volatility. “Gold and silver may deliver higher returns if momentum persists, but come with proportionately higher risk,” he warned.
Across experts, the guidance is consistent: Do not abandon equities, use gold deliberately, and contextualise allocation decisions within a long-term framework rather than short-term price surges.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
