Building your portfolio in FY26? Here’s why 10% in gold makes sense now

As investors plan their allocations for FY26, the conversation around portfolio diversification is gaining fresh momentum—especially when it comes to gold.

Often seen as a traditional safe haven, gold is once again proving its relevance in today’s unpredictable global landscape.

With inflationary pressures, geopolitical uncertainties, and currency fluctuations all in play, experts are advising a measured allocation to gold in investment portfolios.

Why Gold Deserves a Spot in Your Portfolio

“Gold is a hedge against inflation, the US dollar, and uncertainty,” says Kunal Vora, Partner at White Whale Partners. “All of these concerns are heightened currently, thus the case for gold is extremely strong.”

According to Vora, gold doesn’t generate cash flows or dividends. Its value lies in its ability to offset risks that traditional financial assets cannot hedge effectively. In times of policy volatility, global tensions, and economic ambiguity, gold tends to shine—both literally and metaphorically.

He adds, “Gold has had a strong run recently, especially in the lead-up to policy moves and geopolitical uncertainty surrounding President Trump’s announcements. However, once these fears subside, so will the price of gold. It’s important to view it as a dynamic hedge rather than a permanent outperformer.”

A Sensible Allocation Strategy for FY26

For those building long-term wealth, balance is key. Achin Goel, Vice President at Bonanza, recommends that individuals in the 30–40 age group structure their investments with a strategic mix: 70% equities, 20% debt, and 10% gold.

“This allocation allows you to take advantage of growth from equities while maintaining stability through debt, and risk protection with gold,” explains Goel. “Especially in volatile years like this one, having 10% in gold adds an important cushion to your portfolio.”

It’s a practical framework for investors who want to stay aggressive but not blind to macroeconomic shifts.

What the Technicals Say: Gold’s Momentum Is Strong

On the technical front, gold continues to command attention. Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, notes that gold prices have recently touched lifetime highs near ₹93,500 on the MCX, gaining ₹1,500 in a short span.

“Despite rupee strength, the ongoing geopolitical tensions and US-China tariff battles have fueled a surge in safe-haven demand,” Trivedi says. “Bullish sentiment is dominating, with the next resistance seen at ₹94,500–₹95,000, while ₹92,000 acts as a strong support.”

He adds that investor positioning and upcoming global economic data releases will likely continue influencing gold’s short-term direction, but the broader trend remains favorable for now.

What should investors do?

As FY26 begins, the investing environment remains full of moving parts—central bank decisions, global elections, inflation, and war-related uncertainties. In such a setting, a 10% gold allocation offers more than just diversification; it provides resilience.

It’s not about chasing returns—it’s about preparing for volatility. And in that context, gold still makes a lot of sense.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)