Zinc

Ajay Kumar Kedia 20 February 2014

zinc Zinc settled down -0.81% at 128.15 after data showed US January housing starts and construction permits both fell short of expectations. The US Federal Reserves' policy meeting minutes enhanced expectations over further sale back of QE3. Concerns over tighter monetary policies in China kept in check. Reports from the US turned out mixed, while investors only watched from the sidelines before release of minutes from Fed's January policy meeting. Minutes from the Fed's policy setting meeting published after the close showed the Fed may revamp forward guidance as the unemployment rate nears its threshold of 6.5%. Fed officials agreed unanimously to continue to scale back the asset purchase program, causing many financial firms to lower US growth forecasts. In Europe, UK jobs data came in positive in January, with the number of people filing applicants for unemployment benefits down by 27,600 and registered unemployment rate down to the lowest level since December 2008. The number of unemployed fell by 125,000 from October to December, and the unemployment rate rose by 0.1 percentages to 7.2%. LME zinc prices overnight opened at USD 2,056/mt, and edged up to USD 2,075/mt. LME zinc prices touched and intraday high of USD 2,089/mt, and then climbed further near a near-term high, but refraining from rising later the day as the US dollar index rebounded. LME zinc inventories fell by 3,525 mt to 795,050 mt. Technically market is under long liquidation as market has witnessed drop in open interest by -19.62% to settled at 2773 while prices down -1.05 rupee, now Zinc is getting support at 127.3 and below same could see a test of 126.3 level, And resistance is now likely to be seen at 129.8, a move above could see prices testing 131.3.