Zinc settled up 2.08% at 144.85 as US Q2 GDP topped market expectations, boosting market confidence and drove up zinc prices. Manufacturing in the world's top metals user, China, expanded at its fastest clip in 18 months in July, an initial survey showed, while the U. S. economy has gathered pace, with the outlook for its labour market brightening. Zinc supply in particular is in focus, with several top mines drying up, including Century in Australia, while a recovery in the construction industry would revive demand from galvanisers.

The July ADP job data increased 218,000, missing forecast but holding above 200,000 for a fourth month in a row. Meanwhile, the Fed's statement after its policy meeting was in line with market expectations. In addition to continued QE tapering, the Fed was more optimistic over the US economy, especially labor market. The recent movements of US dollar index indicated that investors are now more focused on market fundamentals, with hedging trades in foreign exchange markets down noticeably. US non-farm employment data scheduled for release this week will be the focus of markets, and positive US GDP will continue to affect the market. In the euro zone, the July consumer confidence index was finalized at -8.4, in line with expectations and June's reading.

Germany's preliminary CPI grew by 0.3% MoM in July, level with the reading in June and rose by 0.8% YoY, below the 1% increase a month earlier. Technically market is under short covering as market has witnessed drop in open interest by -9.88% to settled at 4159, now Zinc is getting support at 141.7 and below same could see a test of 138.5 level, And resistance is now likely to be seen at 146.6, a move above could see prices testing 148.3.

Trading Ideas:

Zinc trading range for the day is 138.5-148.3.

Zinc ended higher as US Q2 GDP topped market expectations, boosting market confidence and drove up zinc prices.

Meanwhile, the Fed's statement after its policy meeting was in line with market expectations.

The recent movements of US dollar index indicated that investors are now more focused on market fundamentals.