Commodity Trading Tips for Zinc by KediaCommodity

Ajay Kumar Kedia 21 October 2013

zinc Zinc settled up 0.34% at 116.55 after U. S. lawmakers reached a deal to avert a default, and data showed accelerating growth in top consumer China. Concern over the impact of 16-day shutdown on the U. S. government has also weighed on investor sentiment, trapping prices in narrow ranges. Most investors believe that China's economy will probably slow down in Q4. That being said, China will surely realize the 7.5% growth target for 2013 given the good market fundamentals. Market attention later shifted onto US non-farm employment report and China's flash manufacturing PMI for October due to be announced this week. LME zinc prices last Friday opened at USD 1,929/mt, and then hovered around USD 1,928/mt during Asian trading hours. Positive economic data from China lent some support to base metals prices, when combined with the US dollar index dropping below 79.5, LME zinc prices rose to USD 1,948.5/mt during European and US trading. But as the US dollar index edged up later the day and due to the lack of buyers, LME zinc prices fell and closed at USD 1,930/mt, up USD 1.5/mt or 0.08%. US economic figures due to be announced last Friday were delayed again. Recent remarks by severe US Federal Reserve (Fed) Officials were in favor of keeping QE3 in place. Charles Evans, President of the Federal Reserve Bank of Chicago said he did not see enough economic data that would favor QE3 taper at the next policy meeting and warned against reducing financial risks at the expense of QE3 wind-down and interest rate hike. Now Zinc is getting support at 115.6 and below same could see a test of 114.6 level, And resistance is now likely to be seen at 117.8, a move above could see prices testing 119.