As we head into 2026, the long-term case for gold has never been stronger. While inflation keeps degrading the value of the pound, gold looks set to continue on its upwards trajectory with the fundamentals driving its growth looking as strong as ever.
Inflation is persisting, government debt is spiralling, central banks are increasing their gold buying, and the money supply continues to expand. And as gold gets a digital upgrade, making it more practical for everyday use, a growing number of analysts believe gold may be positioned for another major upward cycle in 2026.
Here’s why the gold forecast among most financial analysts is overwhelmingly positive for 2026:
1. Inflation remains sticky heading into 2026
As of late 2025, CPIH inflation is at around 3.2%, significantly higher than the Bank of England’s 2% target and enough to significantly erode the purchasing power of the pound.
To make matters worse, the Office for Budget Responsibility (OBR) forecasts CPI inflation has stressed that domestically generated inflation is proving more persistent than expected.
The Bank of England has conceded that, even in a best case scenario, the latest fiscal measures will reduce inflation only by around 0.4 percentage points by mid-2026, meaning the UK is likely to experience continued cost of living increases.
What this means for gold in 2026
As inflation persists into 2026, the spending power of the pound will continue to weaken. This means that assets like gold could surge in price and if this plays out, investors who buy gold early could benefit from significant capital growth.
2. Government debt is projected to grow in 2026
The forecasts from the latest OBR Economic and Fiscal Outlook are shocking – UK public sector net debt (PSND) is set to increase by an average of £121 billion per year over the course of the five year projection period.
When measuring UK debt, analysts sometimes remove the Bank of England’s bond holdings to get a “cleaner” figure. However, the inconvenient truth is that even when you take the Bank of England’s bond holdings out of the picture, the UK’s debt is still projected to reach astronomical levels. In fact, by 2030 the UK’s debt is expected to be as high as 95% of GDP. Let that sink in…
No matter how you measure it, UK debt is going up at an unsustainable rate.
What this means for gold in 2026
The national debt crisis in the UK is putting significant pressure on the pound and is likely to necessitate:
- Increased government borrowing
- Increased money printing
- Even higher inflation as a way to dilute the real value of debt
And whilst this is doom and gloom for the pound, the reality is these three outcomes are bullish for gold.
3. Central banks are likely to buy even more gold
According to the World Gold Council’s 2025 Central Bank Gold Reserves Survey:
- 95% of central banks believe global gold reserves will increase over the next 12 months.
- A record 43% say they plan to increase their own gold holdings.
- None expect to reduce their gold exposure.
This is probably the most obvious signal that gold will continue to grow in 2026. Central banks are the world’s largest holders of gold, and when they increase their gold holdings, it’s amongst the strongest drivers of gold’s long term price.
What this means for gold in 2026
If 95% of central banks expect higher global gold reserves, and 43% plan to buy more, we could see another year of large-scale institutional accumulation, driving demand and price upwards significantly.
4. UK money supply continues to expand
Recent Bank of England Money & Credit findings show that broad money (M4ex) continues rising:
- October 2024: Net flow of £19.2bn
- October 2025: Net flow of £8.5bn
It’s important to remember that money supply doesn’t need to “explode” to push gold higher, it just needs to grow faster than productivity.
And the data is clear: the money supply is increasing.
What this means for gold in 2026
The OBR expects increased government borrowing in 2026, and at the same time, markets are widely expecting interest rate cuts to stimulate the economy. Both outcomes mean an increase in the money supply.
As the money supply increases, the spending power of the pound diminishes. In response, the price of assets with fixed supplies, like gold, will grow.
5. Technology is breathing new life into gold
Gold has always been a strong store of value, but until recently, it wasn’t practical as everyday money. The days of gold ownership being limited to buying either physical gold or ETFs are well and truly over.
TallyMoney drastically lowers the barrier to entry, enabling gold to function as a daily-use alternative to regular money. The difference is the money in your Tally account grows in line with gold.
TallyMoney has given gold ownership an upgrade by making it:
- Quick and easy: Download the app, activate your account and buy real LBMA-accredited gold within minutes
- Practical: Spend your gold using the TallyMoney debit Mastercard® whenever you want, worldwide
- Secure: Your gold is fully insured and stored on your behalf in Brinks vaults in Switzerland
- User-friendly: With an easy-to-use app to manage your account from the comfort of your phone
What this means for gold in 2026
As technology makes gold more accessible, its demand will surge. And when you take into account the fact that more and more people are turning to gold to escape inflation and currency debasement, the case for gold as an investment in 2026 looks very strong.
Summarising our gold forecast
In short, the case for gold as an investment in 2026 and beyond is strong:
- Inflation remains above target, with persistent underlying pressures.
- Government debt is forecast to rise in 2026.
- Central banks expect to buy more gold.
- The money supply continues to expand, and interest rate cuts are likely.
- Fintech is making gold more practical than ever before.
These are not passing trends, they are long term, structural drivers that make it very likely that gold’s upward trajectory will continue.
If you want to protect your savings from the eroding effects of inflation and currency debasement, gold remains one of the most reliable and best performing investments.
And now, with TallyMoney, you can own gold that you can spend as easily as using a regular bank account.