Gold Hits Record Highs: Should Investors Book Profits Or Hold For More Gains? Experts Weigh In – News18
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Gold prices hit record highs due to global uncertainty, Trump’s tariff threats, and expected US rate cuts. In Mumbai, 24-carat gold is Rs 90,220 per 10 grams. What should investors do – profit booking or holding?
Gold has given a return of 16% in 2025 whereas Nifty and Sensex fell -1.65% and -2%, respectively on YTD.
Gold Price Today: Gold prices are reaching record highs, driven by global uncertainty, the trade war fuelled by Donald Trump’s tariff threats, and anticipation of further rate cuts by the US Federal Reserve. Currently, gold in Mumbai is priced around Rs 90,220 per 10 grams for 24-carat and Rs 82,700 per 10 grams for 22-carat.
The weakening US dollar and expectations of interest rate cuts have further propelled this price momentum. Considered a safe haven, gold is attracting investors seeking refuge from a volatile and unpredictable stock market.
“Central banks, particularly in emerging markets, are increasing their gold reserves, adding to the bullish sentiment,” said Aksha Kamboj, VP of the India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures Pvt. Ltd.
In India, she added, seasonal demand and festival purchases are also influencing prices. Silver, benefiting from industrial demand and investment interest, is mirroring gold’s trajectory, making both metals attractive amid economic uncertainties.
Gold has given a return of 16% in 2025 whereas Nifty and Sensex fell -1.65% and -2%, respectively on YTD. This surge has led investors contemplating whether to secure profits now or await potentially higher returns.
Gold At Record High: Should You Book Profits?
Vishal Bajaj, Director – Wealth at Client Associates, suggests investors hold rather than book profits unless they wish to diversify into other asset classes currently attractively priced.
He stated that, given the current scenario, the near-term upside is limited. “Historically, over the last 22 years, every time gold has yielded over 40% returns in the previous year, the subsequent 12-month return, on average, has been approximately 4% only,” he explained.
Conversely, Kamboj recommended a staggered approach, where partial profits are booked while maintaining core holdings. She reasons that this balances short-term gains with long-term security.
“Profit booking depends on an investor’s objectives and market outlook. If someone has met their investment goals, partial profit booking may be a prudent strategy,” Kamboj said.
