THE retreat of gold from the $1,800 highs last week found good support from the former resistance level around $1,750. It finished last week on a strong footing, back above the key $1,772 Fibonacci level. $1,800 proved strong resistance though, so look to either sell short as it approaches it again, or buy above $1,805 if it breaks out. Spread Co offers a spread on Spot Gold of $1783.2-$1783.6.
Burberry announces interims on Tuesday and expectations are for another bumper round of numbers. The stock has benefited from its exposure to Asian markets, which has led to its share price bucking the market trend by gaining some 30 per cent. Recently the share price has been suffering from a little fatigue, but the recent weakness could present a buying opportunity. Capital Spreads quotes a price of 1,381.2-1,387.8.
Recent talk of sterling becoming an asset to invest in in times of turmoil has helped to prop it up against other currencies. But early indications of inflation numbers out on Tuesday point to a slight slow down for the month of October, further bolstering the Bank of England’s stance to keep rates at ultra-low levels and maintain their asset purchase programme. Along with unemployment and retail sales figures out mid-week, and both showing signs of weakening, sterling could be weaken considerably from current levels. ETX Capital quotes $1.5912-$1.5915 for the sterling-dollar rolling daily contract.
The third quarter update from the aero-engine maker Rolls Royce certainly cheered investors at the end of last week, with the company’s global customer base helping it to navigate around at least some of the global turbulence we’re seeing right now. The share price has however been pushed out to fresh highs, and any squeeze on commercial lending could arguably see pressure on the firm increasing in the longer term. Current IG Index price on Rolls Royce is 732.8p-735.2p.