Zinc yesterday traded with the positive node and settled 2.02% up at 104.2 but intially LME zinc prices slid due to rising US dollar index last Friday, to USD 2,200/mt level. As SHFE market was closed due to the Mid-Autumn Day festival, LME zinc prices further fell below USD 2,200/mt.
As China’s investors may buy government bonds of the Europe, the euro rebounded, pushing up LME zinc prices to close at USD 2,213/mt. On Monday, risk aversion sentiment further grew due to rumor that Moody’s might cut credit rating of French banks.
Investors concerned that the European debt crisis may deteriorate further, weighing down the euro. Later market sentiment was temporarily stabilized due to news that EU, European Central Bank and IMF will help Greece on Wednesday, with the US and EU equity market rebounding at the tail of the trading.
Spot gold tumbled by 2.5% on Monday, as investors began to sell off gold after it reached historical high in order to make up losses from deteriorating European debt crisis. NYMEX crude oil for delivery in October closed with slight gains.
For today's session market is looking to take support at 101.5, a break below could see a test of 98.8 and where as resistance is now likely to be seen at 105.7, a move above could see prices testing 107.2.
Trading Ideas:
Zinc trading range is 98.8-107.2.
Zinc settled sharp up tracking LME zinc prices slid due to rising US dollar index last Friday,
SHFE market was closed due to the Mid-Autumn Day festival.
Support seen after China’s investors may buy government bonds of the Europe, the euro rebounded
Courtesy: Kedia Commodities
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