Zinc settled up 0.91% at 116.75 as the US dollar dropped after data showed that US July CPI fell short of market expectations. In a strong sign that the Fed is considering a September rate hike, the minutes from the FOMC said the pace of job gains had been "solid," with a range of labor market indicators suggesting that under-utilization of labor resources had continued to diminish. The minutes from July meeting showed the Federal Reserve is moving closer to raising interest rates. Most members judged that the conditions for tightening had not yet been achieved, but noted conditions were "approaching that point." China's zinc prices are expected to fall in the near term with large arriving shipments of imported zinc. Large shipments of imported zinc arrived recently as the high SMM/LME zinc price ratio has left zinc imports profitable over the last two weeks. China's equity market rout could signal more deeply rooted problems in its economy added to a seasonal lull, dragging on price prospects. On the economic front, consumer prices in the U. S. saw a modest increase, with the consumer price index edging up
0.1 percent in July after climbing by 0.3 percent in June and 0.4 percent in May. Technically market is under short covering as market has witnessed drop in open interest by -10.7% to settled at 4322 while prices up 1.05 rupee, now Zinc is getting support at 115.7 and below same could see a test of 114.5 level, And resistance is now likely to be seen at 117.6, a move above could see prices testing 118.3.

Trading Ideas:

Zinc trading range for the day is 114.5-118.3.

Zinc prices gained as the US dollar dropped after data showed that US July CPI fell short of market expectations.

The minutes from FOMC meeting showed many Fed officials believed more evidence is needed before an interest rate hike.

Zinc daily stocks at Shanghai exchange came down by 75 tonnes.