Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 8.79% to settled at 1126 while prices up 3.25 rupees.
Now MCX Zinc is getting support at 280.3 and below same could see a test of 277.2 levels, and resistance is now likely to be seen at 286.2, a move above could see prices testing 289.
Zinc yesterday settled up by 1.16% at 283.4 as dollar seen pressure after GDP growth for the US came below forecasts at 2% and PCE prices increased faster than anticipated.
Contracts to buy U.S. previously owned homes unexpectedly fell in September likely as some potential buyers delayed purchases amid higher prices.The National Association of Realtors (NAR) said its Pending Home Sales Index, based on signed contracts, decreased 2.3% last month to 116.7.
The People’s Bank of China (PBOC) continued to inject a total CNY 200 billion of seven-day reverse repos at an interest rate of 2.2 percent on October 28th, the same as in the previous day, and marking the fourth straight day of injections in the financial system.The central bank said, the move aims to maintain the reasonable and sufficient liquidity of the banking system.
As Europe’s largest refined zinc producer Nyrstar decided to cut output in the fourth quarter due to the soaring electricity prices in Europe and the significant increase in carbon emissions-related costs, the market concerns of inflation caused by the global energy crisis has risen sharply. And the sharp growth in the cost of industrial products will gradually be passed onto the prices.
Trading Ideas:
–Zinc trading range for the day is 277.2-289.
–Zinc prices remained supported as dollar seen pressure after GDP growth for the US came below forecasts and PCE prices increased faster than anticipated.
–UBS sees zinc prices at 3,600/mt by end–Mar 2022, $3,100/mt by end-Dec 2022.
–PBoC injects CNY 200 billion into market for 4th day.
Courtesy: Kedia Commodities
Source: Comodity Online
