THE TIPSTER
THE improving risk appetite and the prospect of better yields on cash deposits threaten to create a top for precious metal prices. So the question is can gold re-test the $1,400/oz level in the near term? The current IG Markets price on spot gold is $1,350.25-$1,350.75.
Kesa Electricals, the parent company of the electrical retailer Comet, saw its shares price tumble last week after issuing a profit warning. Fierce online competition could continue to damage Comet and the shares could fall another 6-12 per cent. The technical picture is also looking bleak on the charts. Spread Co offers a spread on Kesa Electricals of 127.6p-127.9p.
Wheat reached a five-month high in anticipation of bad weather. But the March 2011 future has become the most actively traded contract on the South African Futures Exchange, rising for five consecutive days. With concerns over floods in Australia and a lack of rainfall in South America, Russia and China, the price of wheat could be driven higher. Capital CFDs quotes $8.36-$8.38.
The government-owned banks suffered yesterday after divisions emerged between the Independent Commission and certainn politicians. Both Lloyds’ and RBS’s share price declined, but this could present a buying opportunity. Capital CFDs quotes 64.8p-65.2p for Lloyds.
Early yesterday, news of political turmoil in Ireland pushed the euro down against the dollar to lows around $1.3540. But a bullish think tank report propelled it to new highs of $1.3682. Key resistance levels at $1.3698 and $1.3738 give favour to selling euro-dollar on rallies towards $1.3700. Spread Co offers a 0.8 point spread on euro-dollar of $1.36642-$1.36650.
African Eagle, the South Eastern Africa mining firm, has a major nickel deposit in its Dutwa mine in Tanzania. It is believed to hold 950,000 tonnes of nickel. The share price has risen nearly 300 per cent since last year, but a recent placing was oversubscribed at 15.5p. Spreadex offers a rolling quote of 15.25p-15.5p.