Zinc settled down -0.76% at 124.65 as pressure seen due to the lack of positive news. Jenet Yellen maintained existing monetary stance. US Federal Reserve Chairwomen Janet Yellen's speech was basically in line with expectations, but US December retail sales missed forecasts. Market attention overnight undoubtedly was focused on Yellen's debut hearing. As a representative of dovish policymakers, Yellen didn't take that easy monetary policy as expected, and maintained continuity with her predecessor Ben Bernanke on the wind down of QE stimulus. In addition, she emphasized that the pace of QE tapering would persist on condition that economic data would not deteriorate thoroughly. As to US current jobs situation, Yellen voiced serious caution over comparatively low jobs growth in recent two months, and contested with a reckless decision. Nevertheless, she also made it clear that the Fed's QE stimulus program gave a significant boost to the labor markets, given the absence of overall structural unemployment in the US. Markets responded little to her speech, though. LME zinc prices once dipped to an intraday low of USD 1,995/mt, but rallied to USD 2,000/mt near the end of trading, finally closing at USD 2,003.3/mt, down USD 9.5/mt or 0.47%. Trading volumes increased by 195 lots to 7,722 lots, and total positions decreased by 624 lots to 295,937 lots. LME zinc inventories fell by 5,400 mt to 817,725 mt. Technically market is under long liquidation as market has witnessed drop in open interest by -10.85% to settled at 2300 while prices down -0.95 rupee, now Zinc is getting support at 124 and below same could see a test of 123.4 level, And resistance is now likely to be seen at 125.5, a move above could see prices testing 126.4.

Trading Ideas:

Zinc trading range for the day is 123.4-126.4.

Zinc ended with losses as pressure seen due to the lack of positive news.

Fed's QE stimulus program gave a significant boost to the labor markets, given the absence of overall structural unemployment in the US.

Zinc daily stocks at Shanghai exchange came up by 702 tonnes