Zinc on MCX settled up 1.29% at 192.10 tracking firmness from LME Zinc which was up 0.81% at $2,815.50 per ton despite the physical market is fairly quiet while China is away on holiday ahead of the Chinese New Year later this week. Zinc prices gained as overall basemetals complex gained as the dollar struggled amid concerns of U. S. protectionism under the newly- formed administration of President Donald Trump. Trump formally withdrew the United States from the Trans-Pacific Partnership on Monday, saying he would seek one-on-one trade deals with countries that would allow Washington to quickly terminate them "if somebody misbehaves". The dollar wallowed near seven-week lows in Asian trade, pressured by concerns about the impact of U. S President Donald Trump's protectionist trade stance. Trump's nominee for Treasury Secretary Steven Mnuchin was quoted by Bloomberg as saying that an excessively strong dollar was negative in the short term, which put additional pressure on the currency. A weaker dollar makes dollar- denominated assets such as copper cheaper for holders of other currencies. LME zinc was steady at $2,790 a tonne, maintaining its standing as one January's best performing metals. Zinc prices continuous to show support as surge in China's refined zinc imports seen. But they remained decidedly humdrum over the course of 2016 and the final tally of 403,000 tonnes represented a 10 percent drop from 2015. Technically market is under short covering and getting support at 189.9 and below same could see a test of 187.5 level, And resistance is now likely to be seen at 193.5, a move above could see prices testing 194.7.

Trading Ideas:

# Zinc trading range for the day is 187.5-194.7.

# Zinc gained with investors looking to a pickup in U. S. demand on expected tax cuts and infrastructure spending under the new administration.

# Dollar dropped pressured by concerns about the impact of U. S President Donald Trump's protectionist trade stance.

# Offsetting expectations of rising prices is the Lunar New Year holiday, starting Jan. 27, which is expected to subdue metals demand