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THE TIPSTER

GOLD bugs will have been disappointed with the sharp correction in the precious metal as it was unable to sustain its record highs above $1,200 an ounce. But for now gold seems to have found some support around the 23.60 per cent retracement when drawn from the April low so this could present a good opportunity to get back into the market. Capital Spreads offers a price of $1,144.7-$1,145.2.

But the recent rally in gold has boosted the share price of mining group Petropavlovsk – formerly Peter Hambro Mining. The company is expected to enter the FTSE 100 at the expense of Thomas Cook tomorrow when the quarterly reshuffle takes place. But in spite of all these positives, spread betters have been selling the stock. Spreadex has a December-based spread of 1,235.8p-1,250.1p.

As gold has surged on investors’ fears, so the banks have come under pressure once again. The Dubai crisis and the threat of a windfall tax on banks in tomorrow’s Pre-Budget Report have seen Barclays’ stock fall by nearly £1 from October’s year high of 390p. But some spread betters have been buying into the stock at the lower price in anticipation that the shares have plenty of room to recover their value. ShortsandLongs.com has a rolling Barclays spread of 297.2p-298.1p.

With the climate summit underway in Copenhagen, there is real concern that the airline sector – which has already had a turbulent ride through the economic downturn – could come under scrutiny. A clampdown on the high-profile sector would be an easy win for politicians but could see investors heading for the hills. British Airways’ share price has struggled to break much above 200p of late despite a broker upgrade and reasonable traffic figures last week – suggesting that the risk remains on the downside. The current IG Markets price is 210.29p-210.81p

As we get closer to the Christmas break, market liquidity is getting thinner, so traders could look to implement a sell order in the FTSE 100 future at 5,375, placing a stop at 5,405 and looking for the market to squeeze down to 5,250 over the next week or so. WorldSpreads is offering 5,319.8-5,321.8 on the rolling index future.

Index heavyweight Vodafone is likely to slip in line with the index. Traders could look to sell the blue-chip telecoms company at 145p with a stop at 148p and targeting the 130p-135p area. The spread is 0.1p with WorldSpreads.