MCX Zinc under fresh buying; Resistance seen at 166.3
Commodity Online | June 30 2020
UPDATED 10:20:24 IST

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Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 10.04% to settled at 1797 while prices up 0.85 rupees.

Now MCX Zinc is getting support at 164 and below same could see a test of 162.5 levels, and resistance is now likely to be seen at 166.3, a move above could see prices testing 167.1.

Zinc yesterday settled up by 0.52% at 165.4 as a surge in coronavirus cases fuelled worries about mine shutdowns and shortages. Investors caution intensified amid concerns about a resurgence in US coronavirus cases.

China left its benchmark lending rate unchanged for the second straight month at its June fixing, matching market expectations, after the central bank kept borrowing costs on medium-term loans steady last week.

The one-year loan prime rate (LPR) remained at 3.85% from last month’s fixing, while the five-year LPR was also steady at 4.65% from previously.

The US consumer spending, which accounts for more than two-thirds of US economic activity, grew 8.2% in May, the Commerce Department said.

That was the largest increase since the government started tracking the series in 1959. The reopening of many businesses after being shuttered in mid-March bolstered consumers spending in May.

Consumer spending slumped by a historic 12.6% in April.The University of Michigan said its consumer sentiment index fell to a reading of 78.1, compared to the expected 79.2 and 78.9 in the middle of June.

Though sentiment improved from May, consumers in the regions with record rises in coronavirus cases were less upbeat relative to Northeast residents, and this could weigh on the overall mood in the months ahead.

Trading Ideas:
--Zinc trading range for the day is 162.5-167.1.
--Zinc gained as a surge in coronavirus cases fuelled worries about mine shutdowns and shortages.
--Investors caution intensified amid concerns about a resurgence in US coronavirus cases.
--The US consumer spending, which accounts for more than two-thirds of US economic activity, grew 8.2% in May.

Courtesy: Kedia Commodities