Zinc settled 0.14% up at 110.30 as during Wednesday's session, Germany's Constitutional Court approved the bailout fund and ESM with certain conditions. The court said Germany can approve the euro zone's bailout fund and fiscal pact but cannot increase the size of the fund without the German parliament's approval. Another condition is that German liability in the rescue fund cannot exceed EUR 190 billion and must be approved by the lower house of the German parliament. Germany's ruling cleared obstacles for the country to approve the ESM and use this mechanism to solve the European debt crisis. In response, risky assets surged across the board, while the euro also increased and lifted LME prices. However, following approval of Germany's Constitutional Court on the rescue fund, markets shifted their focus on the Fed's 2-day policy meeting beginning Wednesday. The FOMC will release the latest interest rate decision Sept 14 Beijing time and issued monetary policy statement as well, while Bernanke will hold a press conference later. Investors generally kept cautious ahead of results of the Fed's meeting and chose to lock in profits. For today's session market is looking to take support at 109.4, a break below could see a test of 108.5 and where as resistance is now likely to be seen at 111.4, a move above could see prices testing 112.6.

Trading Ideas:

Zinc trading range for the day is 108.47-112.57.

Zinc ended with slight gains after German constitutional court decided ESM is legal

Germany's Constitutional court said ESM could go ahead but German contribution above 190 billion euros would require prior approval

Chinese zinc smelters are cutting the most production in at least nine years after prices tumbled into a bear market.