With Gold Rallying And Markets Steady, What’s The Best Strategy For Investors?

New Delhi: Gold prices continue to surge while equity markets remain resilient, creating a rare scenario where both traditional safe-haven assets and growth assets are performing well at the same time. This trend has left many investors wondering whether they should shift towards gold, continue investing in equities, or split their portfolios between the two.

Gold’s current rise is driven by global uncertainty, geopolitical risks, and expectations of looser monetary policies. Investors are increasingly turning to gold for safety and wealth protection, as it continues to act as a hedge against inflation and market volatility. Meanwhile, equities are supported by strong corporate earnings, improving macroeconomic indicators, and steady inflows from both domestic and foreign investors. Market experts believe that both asset classes are being fuelled by liquidity and broader confidence in long-term growth.

In such a situation, financial planners suggest that investors shouldn’t pick only one asset class. Instead, the focus should be on diversification. Allocating a portion of one’s portfolio to gold helps balance risk and protects against sudden corrections, while equities continue to offer long-term growth opportunities. Many advisors recommend holding at least 10–15 percent of a portfolio in gold, while keeping the rest diversified across equities based on personal risk appetite.

The current moment is also a good time to reassess financial goals and time horizons. If an investor needs liquidity in the near future, gold provides stability. For those with a longer investment horizon, equities may continue to perform, especially in an economy supported by strong fundamentals.

In short, the rise in gold and firm equity performance suggest that investors should avoid extreme shifts in allocation. Instead of betting on only one asset class, building a diversified portfolio—combining the safety of gold with the growth potential of equities—may be the most effective strategy in today’s market situation.