Jenny Cosgrave is a writer/producer at CNBC.com covering the buy side, economics and markets. Previously she worked as a correspondent for Investment Week, covering the U.K. asset management industry.
Follow Jenny Cosgrave on Twitter @jenny_cosgrave
The latest report from the U.K.'s Office of Budgetary Responsibility (OBR) showed that despite the "austerity rhetoric", the government is nowhere near its deficit reduction targets.
The second quarter's fall-off in commodity prices has led some investors to turn bullish on the asset class, and search for cheap buying opportunities.
Gold soared almost 3 percent to a two-and-a-half week high on Thursday, but analysts are still not convinced the metal is a good long-term buy.
Sterling fell to a three-year low against the dollar on Tuesday, as weak data raised concerns that an economic recovery in the U.K. was still some way off.