Gold Silver Reports — Technically Zinc market getting support at 157 and below same could see a test of 154 level, And resistance is now likely to be seen at 162, a move above could see prices testing 165.
Zinc on MCX settled down -2.33% at 159.35 tracking weakness from LME Zinc which slid 1.5 percent to settled at $2495 slipped ahead of a meeting of the U.S. Federal Reserve and economic data from top consumer China that could yield clues to future demand growth.
A two-day meeting of the U.S. central bank that ends on Wednesday is expected to result in a U.S. interest rate rise. Investors will also be looking for clues to the timing and pace of further tightening. While China’s economy is expected to show steady growth in May, buoyed by solid gains in trade and investment as economic ties with the United States take positive turn and infrastructure spending cushions domestic growth.
Last week LME zinc was trading just shy of $3,000 per tonne as recently as late February. At one stage on Wednesday it hit a seven-month low of $2,427.50 and has since staged only a half-hearted recovery to $2,480.00. All of the industrial metals have been hit by the chill coming off Beijing’s attempts to cool an overheating shadow banking sector.
Now Investors are now focusing on the upcoming 2-day Federal Open Market Committee (FOMC) meeting which starts on 13th June looking for hints of its interest rate projections. Earlier this year, the Federal Reserve announced there could be three or four rate hikes this year.
The central bank is widely expected to raise interest rates by 25 basis points this week, but a recent weak run of US inflation data and a lack of progress on the Trump agenda has caused doubts among market observers that the Fed’s 2% inflation goal will be met by the end of this year. — Neal Bhai Reports