Zinc yesterday traded with the negative node and settled -0.53% down at 103.25 tracking LME zinc prices overnight inched down during Asian trading hours.
The US dollar index surged on concerns European debt crisis will exacerbate, weighing down LME zinc prices to USD 2,160-2,170/mt.
French President Nicolas Sarkozy and German Chancellor Angela Merkel are “convinced” Greece will remain in the euro area, according to a statement issued by Sarkozy after they spoke to Greek Prime Minister George Papandreou by telephone.
As a result, LME zinc prices fluctuated to close at USD 2,173/mt, down USD 27/mt. Europe's apparent inability to stop debt contagion from spreading continued to unnerve global markets on Wednesday, keeping investor risk appetite to a minimum as the crisis continued to play out.
A credit-ratings downgrade of two of France's largest banks only added to the pessimistic tone. In yesterday's trading session zinc has touched the low of 102.35 after opening at 103.85, and finally settled at 103.25. For today's session market is looking to take support at 102.4, a break below could see a test of 101.6 and where as resistance is now likely to be seen at 104, a move above could see prices testing 104.7.
Trading Ideas:
Zinc trading range is 101.6-104.7.
Zinc traded in tight range as markets continued to absorb the negative news of escalating Euro debt crisis.
Europe's apparent inability to stop debt contagion from spreading continued to unnerve global markets
LME zinc price softens as Euro crisis keeps markets nervous
Courtesy: Kedia Commodities
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