Zinc yesterday traded with the negative node and settled -0.18% down at 111.35 and LME zinc prices last Friday edged up to USD 2,138.3/mt after opening due to falling US dollar index. As large numbers of investors sold off goods, LME zinc prices remained fluctuating. Due to the rising euro and rumors that Spanish asked for bailout, LME zinc prices once climbed to USD 2,141/mt, and inched down later in the day. Finally, LME zinc prices closed at USD 2,118/mt, up $14.5/mt. Base metals alongside the broader financial market, has rallied on expectations and then confirmation of QE in Europe, the US and Japan together with infrastructure projects in China. Despite the firmer finish, zinc failed to push higher on the week, snapping back to back weekly gains, as weaker than expected data from the US, Europe and China capped a powerful rally that saw prices of the surge nearly 14 percent since early August. Zinc alongside the broader financial market, has rallied on expectations and then confirmation of QE in Europe, the United States and Japan together with infrastructure projects in China. For today's session market is looking to take support at 111.3, a break below could see a test of 111.2 and where as resistance is now likely to be seen at 111.5, a move above could see prices testing 111.7.

Trading Ideas:

Zinc trading range for the day is 111.15-111.65.

Zinc dropped on profit booking after prices gained due to rising euro and rumors that Spanish asked for bailout

Hopes that central bank stimulus measures will spur more robust growth rates pressured commodity higher

The global refined zinc market was in surplus by 135,000 metric tons in the first seven months of 2012 - ILZSG