Gold has been one of the most talked-about assets of the past two years — and for good reason. After surging nearly 80% in 2025 and smashing through the $5,000-per-ounce barrier in early 2026, the precious metal has captured the imagination of investors ranging from first-time buyers to seasoned portfolio managers. But at the Moneycontrol Global Wealth Summit 2026, industry experts issued a clear and timely warning: gold still belongs in your portfolio, but chasing this rally is a mistake.

Speaking at the summit's panel on precious metals, Kalpen Parekh, MD and CEO of DSP Mutual Fund, put it plainly. "In the last 45 days alone, we have seen precious metals move up by 10 to 15 percent. There is no need to chase something that is already running very fast," he said. Parekh urged investors to treat gold as a portfolio diversifier — not as a growth engine or a momentum trade. His caution was echoed by fellow panelists who noted that many retail investors were switching out of equities into gold simply because of recent price performance — a classic sign of momentum-chasing rather than fundamentals-driven investing.

The concern is not that gold lacks merit. Structurally, the case for holding gold in 2026 remains intact. Central banks and investors have continued increasing their gold allocations, seeking diversification and stability amid ongoing geoeconomic uncertainty. Inflation risks, a potentially weaker US dollar, elevated geopolitical tensions, and the threat of equity market corrections all provide a supportive backdrop. According to the World Gold Council's 2026 Gold Outlook, gold's role as a portfolio diversifier and source of stability remains key amid continued market volatility — regardless of short-term price swings.

The real danger, experts stress, is buying after a sharp run-up. Buying gold after a sharp run-up often means paying a premium driven by fear or excitement rather than fundamentals. For investors with shorter time horizons — particularly retirees — purchasing near the top of a rally leaves little room to recover if prices pull back. Historically, buying during periods of low volatility and investor complacency has produced better long-term returns than chasing prices during crisis-driven spikes.

So what should investors actually do? Experts across the board recommend a disciplined, allocation-first approach:

  • Stick to a target allocation: Most experts recommend making gold 5% to 10% of your portfolio. Don't let a rally push your exposure beyond your intended risk tolerance.
  • Rebalance, don't overweight: Periodic rebalancing — trimming gold after strong runs and reallocating to other assets — can help lock in gains while keeping risk in check.
  • Use dollar-cost averaging: Regular purchases over time mean you buy more ounces when prices dip and fewer when prices spike, eliminating the stress of trying to time the market.
  • Treat gold as insurance, not speculation: Experts say to keep gold as a portfolio stabiliser — a hedge allocation — not an aggressive return driver.

Gold's longer-term outlook remains supported by the same forces that drove it in 2025: central banks and investors seeking protection, diversification, and de-dollarization in their reserves and portfolios. The metal is not going away. But its best role in a modern portfolio is as a steady anchor — not a momentum bet. As one expert at the summit summarized the prevailing sentiment: the investors who win in 2026 will be those who position with discipline, not those who follow the hype.