Zinc settled unchanged at 125.25 tracking LME zinc prices which move between USD 1,970-1,995/mt some support seen in the earlier session as traders looked ahead to the release of U. S. durable goods data later in the day amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases. Basemetals extended gains from Friday, when the Commerce Department said new home sales fell by 13.4% in July, the largest decline in more than three years. The weak data sparked concerns over the strength of the recovery in the housing sector and fuelled speculation over whether the Fed will start to scale back its USD85 billion-a-month asset purchase program in September. The minutes of the Fed's July meeting published last week showed that policymakers remain divided over the timing of a possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. The minutes described recent U. S. economic data as "mixed", indicating that plans to taper could be pushed back if the economy was to weaken. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. Market players were looking ahead to U. S. data on durable goods orders later in the day. Futures were also higher amid receding concerns over a deeper-than-expected slowdown in China. China's state statistics bureau said earlier that the nation's economy is on course to meet the government's annual growth target of 7.5%, with "signs of growth stabilization" becoming "more obvious." Technically market is getting support at 123.7 and below same could see a test of 122 level, And resistance is now likely to be seen at 126.9, a move above could see prices testing 128.4.

Trading Ideas:

Zinc trading range for the day is 122-128.4.

Zinc settled flat as US durable goods orders fell far short of expectations, triggering market concerns over US economy.

Prices were poised to rise following the release of data showing China's manufacturing sector returned to expansion this month.

A separate report released recently showed Europe clawed out of its recession earlier this year.