Zinc prices settled flat after dropping Friday as disappointing demand and a rising supply surplus weighing on prices.
China's consumer price index rose 6.2% in August from a year earlier, the National Bureau of Statistics said Friday, down from July's rate of 6.5% but still above economists' expectations for an increase of 6.1%.Obama proposed a $447 billion package of tax cuts and spending designed to boost the flagging U.S. economy and cut unemployment.
But the highly anticipated plan failed to increase investor demand for risky assets, as the overriding concern for many traders remains the widening European debt crisis. A set of mixed economic data from China also weighed on prices.
Zinc stockpiles declined 809 tons to 414,636 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while lead stored in the warehouses fell 72 tons to 64,575 tons, the data showed.
In yesterday's trading session zinc has touched the low of 101.8 after opening at 102, and finally settled at 102.1.
For today's session market is looking to take support at 101.8, a break below could see a test of 101.5 and where as resistance is now likely to be seen at 102.4, a move above could see prices testing 102.8.
Trading Ideas:
Zinc trading range is 101.5-102.8.
Zinc prices fell sharply as disappointing demand and a rising supply surplus weighing on prices
Industrial production data released Friday show an expansion of 13.5% from a year earlier in August
Zinc weekly stocks at Shanghai exchange came down by 809 tonnes
Courtesy: Kedia Commodities
Get Trading Tips that suits your profile and budget
