Gold hit two-month highs of $1,254 before easing slightly in yesterday’s afternoon trading session. This followed some positive data out of the US. The ISM Manufacturing index staged a rebound in August, exceeding the expectations of the market. Gold has rallied powerfully from the $1,166 level reached in late July due to ongoing economic worries, institutional investor and hedge fund buying and concerns about longer-term inflation trends in the US. Pull-backs to the $1,240 area are a good opportunity to buy the precious metal, with a target initially of $1,270 and then $1,300. Spread Co offers a spread on spot gold of $1,247.0-$1,247.5.
A wave of M&A activity could hit the industrials sector. Killik & Co, the stockbroker, thinks that Weir Group, Cobham and Rotork would appeal to foreign investors and would make attractive add-ons for industrial conglomorates. The recent 325p a share bid for Tomkins, the engineering company, by Pinafore Acquisitions has spurred the M&A rumour machine. Spreadex offers a rolling spread on Weir Group of 1,261.80p-1,270.20p.
Numis, the investment banking group, has released a buy recommendation for Greene King, the pub chain. The group’s AGM is later this month and Numis expects good news on sales and profits expectations for 2011. Spreadex offers a spread of 411.80p-414.10p.