Zinc yesterday settled down -0.86% at 109.2 as pressure seen after economic indicators from US and Europe shown mixed impact. US economic data released overnight were mixed. Durable goods orders rose more than expected by 4.2% in June, but initial jobless claims in the week ending July 20 were worse than expected. Goldman Sachs cut its forecast for US Q2 GDP growth following these figures, weighing LME base metals prices down. However, Hilsenrath said in an article that the US Federal Reserve (Fed) may keep current bond-buying program in place during the July meeting. This raised expectations that the Fed will maintain QE3 for the immediate term, helping base metals rally.Goldman Sachs lowered its expectations of US 2Q GDP growth again, and Wall Street Journal's Jon Hilsenrath published an article in which he believed US Federal Reserve's July policy meeting will maintain the USD 85 billion monthly government bond purchasing plan. European economic indicators were also mixed. The UK Q2 GDP grew 0.6%, the biggest growth since the first quarter of 2011. Nevertheless, this also lowered the possibility of further loose monetary policy by the Bank of England. The GBP suffered selloff following the data and fell sharply against the US dollar. Technically market is under fresh selling as market has witnessed gain in open interest by 3.49% to settled at 3296 while prices down -0.95 rupee, now Zinc is getting support at 108.40 and below same could see a test of 107.60 level, And resistance is now likely to be seen at 110.10, a move above could see prices testing 110.80.

Trading Ideas:

Zinc trading range for the day is 107.6-110.8.

Zinc ended with losses as pressure seen after economic indicators from US and Europe shown mixed impact

In China, funds outstanding for foreign exchange pointed to negative growth in June and interest rates in the market is rising

Germany's IFO Business Confidence Index rose in July, but IFO business expectations weakened slightly to 102.4.