Zinc settled up 0.45% at 112.40 rose on Tuesday as expectations of a weaker dollar fuelled a short-covering rally, but gains are likely to be limited by technical levels and worries about slowing demand growth in top consumer China. The U.S. Federal Reserve starts a two-day meeting on Tuesday. It is widely expected to leave interest rates on hold, a factor behind the dollar's weakness this week, and possibly adopt a more dovish stance. A lower U.S. currency makes dollar-denominated commodities cheaper for non-U.S. buyers. Prices have been under pressure in recent sessions as persistent worries about future demand from top consumer China weighed. The People's Bank of China cut its benchmark interest rate by a quarter percentage point on Friday, the latest in a series of measures aimed at stimulating economic activity and boosting growth. It was the sixth rate cut over the past 12 months, fueling concerns that economic growth is weakening more than is currently expected. The rate cut came several days after Chinese government data showed third-quarter economic growth slowed to 6.9%, the first time since the global financial crisis that the country's gross domestic product has grown less than 7%.Market players now looked ahead to the outcome of a four-day meeting of China's top Communist Party officials later this week, amid expectations for further economic reforms. Market players now looked ahead to the outcome of a four-day meeting of China's top Communist Party officials later this week, amid expectations for further economic reforms. Technically market is under short covering as market has witnessed drop in open interest by -9.4% to settled at 3220, now Zinc is getting support at 111.8 and below same could see a test of 111.2 level, And resistance is now likely to be seen at 113.1, a move above could see prices testing 113.8.

Trading Ideas:

Zinc trading range for the day is 111.2-113.8.

Zinc prices ended with gains as US dollar index fell back due to poor reading of US economic figures.

Profits earned by Chinese industrial companies fell 0.1 percent in September from a year earlier, data from the statistics bureau showed

Market players now looked ahead to the outcome of a four-day meeting of China's top Communist Party officials later this week.