Zinc yesterday settled up 0.42% at 106.45 traded in the range as news seen that Bernanke may hint the US Federal Reserve is close to bring assets purchasing plan to an end at its June policy meeting, pushing down stocks markets and driving up the US dollar index, with commodity currencies hitting daily lows. But as the writer clarified at noon that the article only represents his own viewpoint, rather than sources from the Fed, stocks markets reversed declines, with commodity prices also rebounding. LME zinc prices overnight rallied as supportive market sentiment due to short covering, LME zinc prices strengthened to USD 1,870-1,875/mt. US negotiated with EU at the G8 summit June 17 on the free trade agreement, with the hope of creating thousands of jobs and pushing up economic growth in US and Europe. The official negotiation of free trade agreement will be commenced in Washington in July, which will last for 18 months. The move will give support to US economic recovery. New York Federal Reserve's June manufacturing PMI rose to 7.84, much higher than expectations. The NAHB announced that US July housing market index rose to 52, showing market sentiment in the US property market improved. US May construction permits and housing starts data is expected to boost the market and commodity prices. Meanwhile, business confidence in May was also positive, and the building industry is also improving, so the Bundesbank's statement leaves room for additional easing policy. Technically market is getting support at 105.60 and below same could see a test of 104.80 level, And resistance is now likely to be seen at 107.10, a move above could see prices testing 107.80.

Trading Ideas:

Zinc trading range for the day is 104.8-107.8.

Zinc ended with gains as upbeat US economic data pushed up US stocks markets, driving up zinc prices.

Bernanke may hint the US Federal Reserve is close to bring assets purchasing plan to an end at its June policy meeting

Investors are cautious ahead of the US Federal Reserve (Fed)'s policy meeting due June 18-19.