Zinc settled up 2.06% at 121.15 rose in intraday trade as fresh data revealed China’s import of the base metal had risen almost 3% in August from a year before, and as stocks markets of the world’s second-largest economy gained. But still woes continuing in the Chinese economy and the timing of a potential interest rate hike by the Federal Reserve remain in focus. In China, its dollar-denominated exports fell sharply by 5.5% on a year-over-year basis in August, exacerbating concerns about persisting weakness in the world's second-largest economy. Imports, meanwhile, tumbled 13.8% on a yearly basis, producing a trade surplus of $60.24 billion. The Shanghai Composite index still rallied by more than 4.5% in the final hour of trading to erase losses from Monday's session and close up by approximately 3%. On Monday, the index closed down by more than 2.5% as news reverberated that China revised its GDP growth rate for 2015 downward from 7.4% to 7.3%. Many expect Chinese GDP growth to fall below 7% for the third quarter after barely reaching the threshold over the first two quarters of the year. China is currently experiencing its lowest rate of economic growth in more than a decade. For the most part, commodity traders are reluctant to execute any major trades before the Federal Open Market Committee completes its two-day September meeting on Sept. 17. Analysts believe there is a 50-50 chance the FOMC could raise its benchmark Federal Funds Rate for the first time since 2006. Technically now Zinc is getting support at 118.8 and below same could see a test of 116.3 level, And resistance is now likely to be seen at 122.6, a move above could see prices testing 123.9.

Trading Ideas:

Zinc trading range for the day is 116.3-123.9.

Zinc gained boosted by data showing healthy Chinese imports and a bounce in hard-hit equity markets in the world's top metals consumer.

Prices got an added lift when U.S. markets reopened after Monday's Labor Day holiday, prompting investors to buy.

German exports climbed 2.4 percent on the month to 103.4 billion euros ($115.6 billion) while imports grew by 2.2 percent to 80.6 billion euros.