Technically Zinc market is under short covering as market has witnessed drop in open interest by 0.64% to settle at 7769.
Now MCX Zinc is getting support at 211.5 and below same could see a test of 210.2 levels and resistance is now likely to be seen at 214.2, a move above could see prices testing 215.6.
Zinc on MCX settled up 0.12% at 212.75 buoyed by steady demand and as the dollar hovered below recent peaks. Chinese data this month is expected to show the world's second-biggest economy and biggest metals consumer cooled further in October as policymakers harden efforts to reduce financial risks and foster long-term sustainable growth.
The House of Representatives is expected to vote this week on a major tax reform bill amid uncertainty over the outcome of the bill after the head of the House of Represents’ tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes.
With a 52-seat Senate majority, Republicans can only afford to lose two GOP senators – as Democrats are widely expected to vote no – , but Vice President Pence would have to break a tie. Uncertainty over the progress of the Republican tax plan has weighed on the dollar, helping gold prices snap its three-week losing streak on Friday but traders expect the precious metal to make its next significant move higher or lower when the Fed members meet in December.
In the week ahead, inflation readings will matter most for global financial markets, with the US, UK, euro zone and Canada all set to release CPI data. Investors will also be focusing on the Central Bank Communications Conference hosted by the ECB, with a panel discussion including the heads of the European, U.S., British and Japanese central banks in the spotlight.
--Zinc trading range for the day is 210.2-215.6.
--Zinc prices remained supported buoyed by steady demand and as the dollar hovered below recent peaks.
--Chinese zinc mine output has been impacted more than copper due to the small-scale of zinc mines.
--MMG's Dugald River mine will process an average 1.7 million tonnes a year of ore to initially produce 170,000 tonnes of zinc in concentrate.
Courtesy: Kedia Commodities