Zinc settled flat at 112.50 as favorable and unfavorable news was intertwined last week. The US announced that its industrial output grew at the fastest pace in recent two years in November, and capacity utilization rate continued rising. Finance ministers of the EU agreed to issue EUR 34.3 billion to Greece and sent the euro increasing rapidly, which provided strong support to the financial markets. Moreover, the US consumer prices dropped for the first time in six months in November. Nevertheless, the Eurostat reported that the number of employed persons fell by 0.2% in 3Q quarter-on-quarter and dropped 0.7% on a yearly basis. The euro zone's recession is deeper in 4Q according to the region's PMI data, as the region's private sector business activity shrank for a eleventh straight month in December, bringing heavy pressures to copper markets. Furthermore, investors were still worried over the US budget talks and neglected positive economic figures from the US and China. In response, US equity markets closed down. All are eyeing on talks between President Obama, a Democrat, and House Speaker John Boehner, a Republican, continue. However, no resolution appears to be forthcoming. There is one sliver of hope though, as Boehner, previously against tax increases of any kind, has shown a willingness to let the tax rate rise on US taxpayers earning more than $1 million per year. For today's session market is looking to take support at 112.4, a break below could see a test of 112.3 and where as resistance is now likely to be seen at 112.6, a move above could see prices testing 112.7.

Trading Ideas:

Zinc trading range for the day is 112.3-112.7.

Zinc settled flat as market concerns over US fiscal cliff negotiations spread weighing on prices

Finance ministers of EU agreed to issue EUR 34.3 billion to Greece and sent euro increasing rapidly, which provided support

Investors were still worried over the US budget talks and neglected positive economic figures from the US and China.