MCX ZINC NEWS : 10.01.2017
Zinc on MCX settled up 2.22% at 182 rose to its highest level in three weeks on Monday as the US dollar fell and on expectations of a continued shortage in supply for the metal used to galvanise steel. Zinc, the best performing LME metal, rose 60 per cent in 2016 fuelled by fears of shortages after some major mines were closed or suspended. This also means the annual commodity index rebalancing this week could pressure LME zinc. LME Zinc ended 1.8 per cent higher to $US2,667 per ounce on the LME, a level last seen on Dec. 19. Supporting base metals was also a weaker dollar, which fell 0.3 per cent, after a U.S. Federal Reserve official called for faster interest rate increases. Also disruptions could come as soon as this week with a ban on ore exports from Indonesia set to come into effect, although miner Freeport is in talks with the government to continue exports as it constructs a new smelter. In wider markets, U.S. employment increased less than expected in December but a rebound in wages pointed to sustained job market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Technically market is under fresh buying as market has witnessed gain in open interest by 5.47% to settled at 6328 while prices up 3.95 rupee, now Zinc is getting support at 179.4 and below same could see a test of 176.7 level, And resistance is now likely to be seen at 183.5, a move above could see prices testing 184.9.
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Zinc on MCX settled up 2.22% at 182 rose to its highest level in three weeks on Monday as the US dollar fell and on expectations of a continued shortage in supply for the metal used to galvanise steel. Zinc, the best performing LME metal, rose 60 per cent in 2016 fuelled by fears of shortages after some major mines were closed or suspended. This also means the annual commodity index rebalancing this week could pressure LME zinc. LME Zinc ended 1.8 per cent higher to $US2,667 per ounce on the LME, a level last seen on Dec. 19. Supporting base metals was also a weaker dollar, which fell 0.3 per cent, after a U.S. Federal Reserve official called for faster interest rate increases. Also disruptions could come as soon as this week with a ban on ore exports from Indonesia set to come into effect, although miner Freeport is in talks with the government to continue exports as it constructs a new smelter. In wider markets, U.S. employment increased less than expected in December but a rebound in wages pointed to sustained job market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Technically market is under fresh buying as market has witnessed gain in open interest by 5.47% to settled at 6328 while prices up 3.95 rupee, now Zinc is getting support at 179.4 and below same could see a test of 176.7 level, And resistance is now likely to be seen at 183.5, a move above could see prices testing 184.9.
