Commodity Trading Tips for Zinc by Kedia Commodity

Ajay Kumar Kedia 31 July 2013

zinc Zinc yesterday settled up 1.34% at 109.70 tracking LME zinc prices gained as Asian stocks mostly rose and boosted LME zinc prices. But as the market was cautious ahead of major economic news, LME zinc prices climbed to USD 1,856.5/mt. Germany's Gjk CCI in August topped expectations, but did not drove up the market. Standard & Poor's reported that China's GDP growth in 2013 will likely fall short of the 7.5% official target, which pushed down LME zinc prices to USD 1,840/mt, dipping to USD 1,829.3/mt, a record low since July 6, and finally closed at USD 1,834/mt, down USD 18.3/mt, or 0.99%. European and US major economic data was mixed. US Conference Board's July CCI was only 80.3, the first decline in five months; annualized US home price index in July rose by 12.17%, the largest growth since March 2006; euro zone July economic climate index rose for the third consecutive month from 91.3 in June, to 92.5, the highest in 15 months. CPC Central Committee Political Bureau held a meeting yesterday, releasing measures to push economic growth. The People's Bank of China restarted reverse repurchasing yesterday for the first time in two months, injecting RMB 17 billion in the open market, with bidding rate of 4.4%, higher than 3.35% last time. The central bank took such a move to ease liquidity tightness. European and US stocks markets mostly closed with gains. Markets will be cautious ahead of US Fed's policy meeting. Technically market is under short covering as market has witnessed drop in open interest by -16.76% to settled at 2782 while prices up 1.45 rupee, now Zinc is getting support at 108.45 and below same could see a test of 107.2 level, And resistance is now likely to be seen at 110.4, a move above could see prices testing 111.1.