Zinc settled up 0.33% at 138.65 after data showed that the metal mainly used for galvanising steel was in a deficit of 234,000 tonnes in January to June. Macroeconomic data released overnight were mixed. Home prices in China's first-tier cities are expected to fall due to high inventories, fueling concerns over China's property market. US CPI due for release late on Tuesday should come in still below the US Federal Reserve’s 2% target. Investors will pay close attention to Wednesday's release of minutes from the US Fed’s July policy meeting as well as comments from the Fed’s summit in Jackson Hole, Wyoming on Friday. Figures from the National Association of Home Builders (NAHB) showed on Monday that US homebuilder sentiment rose in August to a 7-month high of 55 from 53, hovering above the 50 mark for a second consecutive month. Manufacturing reports from China, the euro zone and the US will also be announced on Thursday. Investors should stay in a cautious mood ahead of the release of these economic data. LME zinc prices opened at USD 2,281.75/mt overnight, dipping to USD 2,266/mt. US NAHB home price index topped market expectations. When combined with easing tension between Ukraine and Russian, risk aversion decreased, pushing up US stocks. LME zinc prices also pulled up to USD 2,294/mt, and closing at USD 2,287.75/mt, up USD 7/mt or 0.13%. UK's July CPI and PPI, as well as US July housing and CPI data will be released today, which is expected to be mixed.  Technically Zinc is getting support at 137.9 and below same could see a test of 137 level, And resistance is now likely to be seen at 139.4, a move above could see prices testing 140.

Trading Ideas:

Zinc trading range for the day is 137-140.

Zinc gained after data showed that the metal mainly used for galvanising steel was in a deficit of 234,000 tonnes in January to June

Home prices in China's first-tier cities are expected to fall due to high inventories, fueling concerns over China's property market.

Zinc daily stocks at Shanghai exchange came up by 4060 tonnes.