Commodity Trading Tips for Zinc by KediaCommodity

Ajay Kumar Kedia 21 May 2013

Commodity Trading Tips for Zinc by KediaCommodity Zinc yesterday traded with the positive node and settled 0.74% up at 101.1 as with falling US dollar index, bargain hunters entered the market and supported prices. As the Chicago Fed's president Charles Evans noted in his speech that the employment market has seen improvement, but it remains uncertain whether the recovery will sustain, and the current inflation is well below the 2% target of the Federal Reserve. As the speech implied continuation of the easing policies, the US dollar index gave back Friday's gains, and non-US currencies rebound. Markets are now eyeing Fed Chairman Bernanke's speech on Wednesday and China's economic data on Thursday. The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008. The US Federal Reserve could continue full-speed ahead on its bond-buying program through the summer, but end it abruptly in the autumn if by then it is confident that the improvement in the jobs outlook is here to stay, Charles Evans said on Monday. His opinions are at odds with another three US officials, who appealed last week for exit of QE3 before the end of this year. Evans' remarks sent the US dollar index down 0.48%. Investors are now eyeing Fed Chairman Bernanke's speech on Wednesday and the minutes of the latest monetary policy meeting. In yesterday's trading session zinc has touched the low of 99.35 after opening at 100.1, and finally settled at 101.1. For today's session market is looking to take support at 99.9, a break below could see a test of 98.6 and where as resistance is now likely to be seen at 101.8, a move above could see prices testing 102.5.