Commodity Trading Tips for Zinc by Kedia Commodity

Ajay Kumar Kedia 14 August 2013

zinc Zinc yesterday settled down -0.13% at 117.35 giving up earlier gains after ZEW's monthly survey showed the Germany's ZEW economic Index rose to 42.0 in August from July's 36.3 and was well above the 40.0 expected. US retail sales rose less than expected on a m-o-m basis in July, but did point to a fourth straight month of growth. Excluding automobile, gasoline and building materials, core sales in the US in July recorded the largest growth so far this year. US consumer spending also hit a 7-month high. However, positive figures also ignited fear that the Fed may trim bond-buying program soon. The US dollar index strengthened as a result, keeping a lid on zinc prices. News from Europe and US overnight was mostly positive. US retail sales in July rose for the fourth consecutive month, with core retail sales up 0.5%, the largest monthly growth since Dec'12. Better than forecast retail sales data increased market confidence significantly, with the US dollar index and US stocks rising across the board. Barclays also raised expectations of US 3Q GDP growth to 2.2%. Germany's ZEW economic situations and climate index were both higher than expectations and June's; a RICS survey shows UK's home price index in June rose from 21 to 36, hitting a record high since Nov'06, with Germany's political uncertainty decreasing. Merkel won the majority given low unemployment rate, fiscal deficit and short-term government bond yields and increasing income of the people, despite people do not support the government to bail euro zone countries in financial difficulties with massive capital. Technically market is getting support at 116.40 and below same could see a test of 115.40 level, And resistance is now likely to be seen at 118.20, a move above could see prices testing 119.00.