Zinc yesterday traded with the negative node and settled -0.05% down at 99.6 tracking LME zinc prices overnight stood at $2,200/mt in the morning session during Asian trading hours, but inched down later the day.
Orders for US durable goods jumped 4% in July, much higher than forecasts, boosting LME zinc prices to rally, but with prices failing to gain back previous losses and finally closing at $2,173/mt, down $31/mt.
Transactions were quiet as the market was waiting for results of the meeting by US Fed Reserve this Friday. Also investor confidence climbed overnight with all US stock prices climbing after the US Dept of Commerce announced July durable goods orders rose 4%, much higher than the 2% expectation.
Meanwhile, as more investors expected US Fed to provide QE3, risk aversion capital successively exited gold markets with London gold prices falling by nearly 4% to USD 1,758.6/oz. However, as market sentiment remain cautious in the recent period, the US dollar index climbed at the tail of trading to 74.063, up 0.3%. LME base metals closed mixed.
In yesterday's trading session zinc has touched the low of 98.55 after opening at 99.55, and finally settled at 99.6.
For today's session market is looking to take support at 98.7, a break below could see a test of 97.8 and where as resistance is now likely to be seen at 100.3, a move above could see prices testing 101.
Trading Ideas:
Zinc trading range is 97.8-101.
Zinc traded in the tight range tracking LME zinc prices overnight stood at $2,200/mt.
Investors were cautious amid global macroeconomic instabilities, weak equity market also weighed.
Transactions were quiet as the market was waiting for results of the meeting by US Fed Reserve this Friday.
Courtesy: Kedia Commodities
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