Zinc settled up 0.99% at 142.45 snapped two days of gains before data on industrial production from China, the world's biggest user of industrial metals. But market concerns over geopolitical turmoil and since euro zone economic climate index hit a one-year low, which depressed market sentiment. Zinc inventories monitored by the Shanghai Futures Exchange fell 1.9 percent last week to 199,449 tons, the lowest since December 2009. Zinc stockpiles monitored by the LME, down 23 percent this year, climbed 1.3 percent to 715,650 tons, the highest since May data showed. Poor data for the euro zone and Germany triggered concerns over a slowdown the German economy, driving down US and European shares. Investors remained cautious against geopolitical crisis and before the release of China's fixed asset investment and housing investment data. In China, large cities, such as Beijing and Shenzhen, will reportedly loosen curbs on home purchases, but detailed rules have yet to be announced. Thus, metal markets took limited impetus therefrom. Money managers cut their net-long position in zinc to 85,731 contracts from 96,482 contracts, according to LME's second weekly Commitment of Traders report yesterday. LME zinc prices closed with declines for four days in a row last week, but bounced back this week. LME zinc prices opened at USD 2,305.5/mt overnight, and once surged to USD 2,345.75/mt. LME zinc prices rolled back early gains and closed at USD 2,328/mt, up USD 19.75/mt or 0.86%. Technically market is under fresh buying as market has witnessed gain in open interest by 10.79% to settled at 5688 while prices up 1.4 rupee, now Zinc is getting support at 140.9 and below same could see a test of 139.3 level, And resistance is now likely to be seen at 143.6, a move above could see prices testing 144.7.

Trading Ideas:

Zinc trading range for the day is 139.3-144.7.

Zinc paced gains amid signs demand is improving in China, the biggest consumer.

Zinc inventories monitored by the Shanghai Futures Exchange fell 1.9 percent last week to 199,449 tons, the lowest since December 2009.

Zinc stockpiles monitored by the LME, down 23 percent this year, climbed 1.3 percent to 715,650 tons, the highest since May data showed