THE TIPSTER
GOLD took a spectacular tumble at the end of last week, falling to as low as $1,196 at one point on Thursday. There were rumours that the fall was caused by some funds liquidating long gold positions to fund margin calls in other products such as equities; and the dollar took a hammering. The $1,196 to $1,200 area should prove to be a good support level and with the Indian wedding season not far away, these could be good levels to be buying. Spread Co offers a spread on spot gold of $1,211.4-$1,211.9.
British Airways may be making some headway in its dispute with cabin crew but this hasn’t stopped the share price from testing territory below the 190p mark.
Traffic figures due for release today will again be marred by the recent strike action, but positive sounds regarding cargo traffic and the market outlook will prove instrumental. The ongoing threat of a double-dip recession is clearly going to frighten investors in this sector so regardless of how bullish an outlook the airline paints, the global situation is arguably key. The current IG Index price for the London-listed airline is 189.4p-190p.
Another company due to update the market this week is Marks & Spencer. Although the store’s barbecue range of food has probably benefited from the World Cup and the recent hot weather, it is unlikely to be enough of a boost to sales. And with uncertainty lingering over the economic recovery, the second quarter outlook could be less than stellar as well. The current IG Index price is 331.8p-332.7p.
Oil and gas producer Dana Petroleum has seen its share price rocket since it was announced that South Korea’s national oil firm Korea National Oil Corp (KNOC) made a preliminary bid for the British firm. There might well be further upward momentum for the stock if the bid progresses. Capital Spreads quotes 1,396.4p-1,400.6p on the stock.