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Friday, March 24, 2023

MCX Zinc likely to move in a range of 186.4-192.4

Technically MCX Zinc market is getting support at 187.6 and below same could see a test of 186.4 level, And resistance is now likely to be seen at 190.6, a move above could see prices testing 192.4.

Zinc on MCX settled down 2.13% at 188.65 dropped on long liquidation tracking weakness from Shanghai zinc prices which fell more than 3 percent on Monday, the first trading session after a week-long national holiday, tracking a drop in London prices in the previous session.

London zinc fell 1 percent to $2,704 per tonne on Friday. Chinese zinc prices are expected to track London prices lower… Meanwhile, zinc could be even more volatile before demand from downstream users re-emerges in March.

The most-traded zinc contract for March delivery on the Shanghai Futures Exchange fell as much as 3.2 percent, its sharpest intraday drop in 11 weeks, before settling down 3 percent at 21,605 yuan ($3,188.37) a tonne.

Meanwhile US negotiators are preparing to press China this week on longstanding demands that it reform how it treats American companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

Last night base metals traded lower Zinc and lead dropped more than 2%, copper fell 0.77%, nickel slipped 1.06% and aluminium closed flat down by 0.22 as the US dollar index rose above 97 on Monday as an economic slowdown in Europe, weak emerging markets and the strong US job market drove investors to the safe-haven currency.

China’s foreign exchange reserves rose to $3.0879 trillion at the end of January, data showed Monday. A day ahead Economic data slated for release today include US December JOLTS. On the central bank front, Fed Chairman Jerome Powell, Fed governor Michelle Bowman, BoE Governor Mark Carney and Bundesbank President Jens Weidmann will deliver speeches.

Trading Ideas:
–Zinc trading range for the day is 186.4-192.4.
–Zinc dropped as investors were unable to shake off worries about global growth, U.S. politics and the Sino-U.S. trade war.
–Cash zinc has moved from a premium to a discount against the three-month LME contract for the first time since September, suggesting shortages.
–Trump has said he may declare a national emergency to build a wall along the U.S.-Mexico border if he cannot reach a deal with Democrats.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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