Zinc settled up 0.25% at 142.5 as major economic data from the US released overnight are positive which, when combined with easing geopolitical turmoil, boosted market sentiment. The Richmond Fed Manufacturing Index climbed in August to 12, its highest since March 2011, while US durable goods orders for July grew 22.6% MoM, well above the estimated 8% increase, boosted by a sharp rise in transportation orders. The S&P/Case- Shiller Home Price Index report revealed that the home price index covering 20 major US cities in June edged up 8.1% YoY, the slowest growth since January 2013. The Federal Housing Finance Agency (FHFA) reported that its seasonally adjusted gauge of home prices rose in June 5.1% YoY. Despite the slower growth in home prices, US stocks extended gains, with the Standard & Poor’s 500 Index closing above the 2,000 mark. The US dollar index also hit a refreshed high, putting a damper on base metals. LME zinc prices opened at USD 2,351.25/mt overnight, and rose to touch an intraday high of USD 2,370/mt. But since the US dollar index was also boosted by upbeat economic indicators, the euro hit a record low, weighing down LME zinc prices to USD 2,355/mt, and closed at USD 2,355.25/mt, up 6.25/mt or 0.27%. The market will absorb upbeat economic indicators from the US today, which will push up the US dollar index and weigh on base metals prices. Technically market is under short covering as market has witnessed drop in open interest by -7.28% to settled at 4201 while prices up 0.35 rupee, now Zinc is getting support at 141.6 and below same could see a test of 140.8 level, And resistance is now likely to be seen at 143.1, a move above could see prices testing 143.8.

Trading Ideas:

Zinc trading range for the day is 140.8-143.8.

Zinc prices ended with gains as major economic data from the US released overnight are positive.

The much-concerned US home price index missed forecast, growing more slowly, as weak wage growth curbed the rise in home prices.

Zinc daily stocks at Shanghai exchange came down by 2720 tonnes.