There is increasing evidence that a worldwide economic recession could occur soon, as figures from countries such as England and Germany show a downturn in spending and confidence in currencies, according to Reuters.

While the news is bad for housing markets and retailers, it could be good for investors in gold, as weaker currencies make the metal better value for investors while remaining steady in turbulent markets.

Peter Meister, economist at BHF Bank, said that the outlook for the economy, particularly in the US, appears to be gloomy.

"The view that the US [is] only in a temporary phase of weakening and will soon move towards potential growth is barely tenable any more. That is playing a role. The environment in the euro zone is also weakening," he said, according to Reuters.

Meanwhile, a report from GFMS released last week showed that demand for gold shows no sign of abating, with the jewelry market having expanded by five per cent in 2007.

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