Zinc yesterday traded with the positive node and settled 0.74% up at 101.35 as support seen from better-than-forecast China's GDP and positive results of Spanish treasury bill auctions, LME Zinc prices overnight surged to breakthrough the USD 2,000/mt level, with prices finally closing at USD 1,990.3/mt, up USD 35.3/mt.
As spot discounts narrowed to USD 7-8/mt, large amounts of spot goods surged to the warehouse, combined it is the third Wednesday this month, LME inventories surged by 17,975 mt, to 830,000 mt.
China's industrial output at large-sized enterprises was up 13.9% YoY, and fixed-assets investment, excluding farmers, was up 23.8% YoY., and retail sales were up 17.1% YoY, suggesting steady improvement in economic restructuring and stable and fast growth in economy.
Auction of Spanish, Greek and EFSF’s bond was positive, and the New York Fed manufacture index for January also vaulted market expectation.
Boosted by improved market sentiment, equity markets in the US and Europe advanced, and the US dollar fell to test 80 mark.
In response, base metal prices advanced to certain extent.
The Greek negotiation will be resumed on Wednesday, and market sentiment is expected to be cautious.
For today's session market is looking to take support at 100.7, a break below could see a test of 100 and where as resistance is now likely to be seen at 102.2, a move above could see prices testing 103.
Trading Ideas:
Zinc trading range is 100-103.
Zinc jumped near to 1% as upbeat GDP data from China boosted prices to certain extent.
Due to better-than-forecast China's GDP and positive results of Spanish treasury bill auctions, Zinc prices overnight surged.
The Greek negotiation will be resumed on Wednesday, and market sentiment is expected to be cautious.
Courtesy: Kedia Commodities
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