Zinc On MCX Settled Up 1.86% At 161.95

Zinc on MCX settled up 1.86% at 161.95 as support seen after the update that capacity cuts in China drove up steel prices by 3 percent. LME zinc ended the day 0.4 percent up at $2,505 as sentiments improved after the update that the global zinc market deepened its deficit to 92,400 tonnes in April from a revised 72,700 tonnes in March, data from the ILZSG showed. While Zinc stocks in LME warehouses fell another 1,800 tonnes to 316,175 tonnes, their lowest since early 2009, exchange data showed.

From data point the US Department of Labor said initial jobless claims in the week ending June 10 decreased by 8,000 to 237,000 from the previous week’s total of 245,000. Meanwhile, the Empire State manufacturing index climbed to 19.80 in June from -1.00 the previous month, compared to expectations for a reading of 4.00. The data came a day after the Fed raised interest rates for the second time this year, putting it in a range between 1.0%-1.25%.

The central bank maintained its outlook of one more rate hike for this year, as it expects that a tightening labor market will lift inflation to the 2% target over the medium term. The Fed also provided greater details on how it plans to reduce its massive $4.5 trillion balance sheet. Meanwhile, market players continued to monitor political turmoil in the U.S. after the Washington Post reported that President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice. Technically market is getting support at 160 and below same could see a test of 158.1 level, And resistance is now likely to be seen at 163.1, a move above could see prices testing 164.3.

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Suhani Verma

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