Zinc settled down -0.33% at 120.6 as pressure seen after rise in LME stock by 23750 tonnes and also by nervousness ahead of a Federal Reserve meeting next week and fears of a hard landing in top consumer China. The U.S. Federal Reserve is expected to keep interest rates steady after its meeting next week, but many see a rate increase before the year ends. Also on the agenda is a deluge of August economic data from China including industrial production and investment, both vital indicators, that could reinforce negative sentiment in industrial metals markets. On the economic front, a Labor Department report showed jobless claims to have pulled back in the week ended September 6, with initial jobless claims dropping to 275,000, a decrease of 6,000 from the previous week's revised level of 281,000. Economists expected jobless claims to dip to 275,000 from the 282,000 originally reported for the prior week. Import prices in the U.S. tumbled by 1.8 percent in August following an unrevised 0.9 percent decrease in July. The report also showed a steep drop in export prices, which slumped by 1.4 percent in August after falling by a revised 0.4 percent in July. LME zinc prices opened at USD 1,808/mt on Thursday, and surged to USD 1,830/mt but fell back, and closed at USD 1,812.5/mt, down USD 4.5/mt or 0.25%. LME zinc inventories grew 23,750 to 575,125 mt. Technically market is under fresh selling as market has witnessed gain in open interest by 5.98% to settled at 3547 while prices down -0.4 rupee, now Zinc is getting support at 119.9 and below same could see a test of 119 level, And resistance is now likely to be seen at 121.9, a move above could see prices testing 123.

Trading Ideas:

Zinc trading range for the day is 119-123.

Zinc settled down as pressure seen after rise in LME stock by 23750 tonnes and also by nervousness ahead of a Federal Reserve meeting next week.

China's PPI has dropped for 42 consecutive months, fueling expectation for more pro-growth measures.

Zinc daily stocks at Shanghai exchange came up by 532 tonnes.