Zinc settled 0.14% up at 109.50 traded in the range as investors continued to eye negotiations on the budget talks in the US Wednesday, as the US Congress needs to reach a compromise to avert $ 600 billion in tax hikes and spending cuts due to start in January. The so-called fiscal cliff could hurt the world's largest economy. Besides, the Fed released Biege Book stating that the US economy expands at a measured pace in recent weeks, as consumer demand and housing market grew but were still negatively impacted by a slowing manufacturing industry as well as the storm Sandy. Contacts in many of the Fed's districts expressed concerns and uncertainty about the federal budget, especially the fiscal cliff. Meanwhile, the US Commerce Department announced that US new home sales sank in October to annual rate of 368K units, below market expectation of 390K units and revised reading of 369K units in September, denting market optimism over the US housing market. Nevertheless, there was news reporting that US President Obama met representatives of the middle class and insisted that they should directly contact with the US Congress and urge it to take actions. This raised market anticipation that the Obama will reach agreements on budget negotiations, which helped US equity markets reverse earlier losses, with the DJIA increasing by 0.83%. For today's session market is looking to take support at 108.9, a break below could see a test of 108.2 and where as resistance is now likely to be seen at 110, a move above could see prices testing 110.5.

Trading Ideas:

Zinc trading range for the day is 108.23-110.53.

Zinc settled flat as investors turned to the safety of the US dollar as a result, curbing the upward momentum of prices

Rehn: Eurozone is convinced the Greek government is committed being on track.

Fitch warned that it may cut France's 3A credit rating next year if the country cannot meet its 3% budget target.