Zinc settled down -0.59% at 117.70 as rupee rose to a three-week high while LME zinc prices gained after Obama required the Congress to suspend the vote for a military attack on Syria to seek for diplomatic plan. The market felt a sense of relief due to easing Syria issue, pushing up LME zinc prices to an intraday high of USD 1,889/mt, but lack any impetus to rise. Also GBP rebounded due to sharply decreasing August jobless claims in UK, but other currencies fluctuated in a narrow range. But Investors remained cautious prior to the Fed's September policy meeting, pushing down LME zinc prices, and closing at USD 1,875/mt, down USD 6/mt. Obama no longer insisted to launch a war against Syria, and said he had required the Congress to suspend a vote for the military action and seek for diplomatic plans. Although it is uncertain if a diplomatic plan will be made successfully, chemical weapons threat from Syria will likely be resolved without a military attack, causing market concerns to ease further. The US dollar index dropped by nearly 1.4%. The number of UK jobless claims in August decreased by 32,600, with the decline larger than both forecast and July, and the unemployment rate fell further to 4.2%, a record low since February 2009; the number of ILO's unemployment over the past three months by July decreased by 24,000, and the unemployment rate dropped to 7.7%, the lowest since November 2012, with the GBP against the US dollar index hitting a record high of 1.5825. European and US stocks generally rose except for the Nasdaq Composite Index; LME base metals prices dropped except for nickel. Technically market is getting support at 116.8 and below same could see a test of 115.9 level, And resistance is now likely to be seen at 119.2, a move above could see prices testing 120.7.

Trading Ideas:

Zinc trading range for the day is 115.9-120.7.

Zinc dropped due to firmness in rupee despite LME zinc gained after Obama required Congress to suspend the vote for military attack on Syria to seek for diplomatic plan.

The number of UK jobless claims in August decreased by 32,600, with the decline larger than both forecast and July

Zinc daily stocks at Shanghai exchange came down by 924 tonnes