Zinc MCX Under Fresh Selling Support Key 162

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Gold Silver Reports — Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 1.55% to settled at 4835 while prices down 0.1 rupees.

MCX Zinc is getting support at 162 and below same could see a test of 160 level, And resistance is now likely to be seen at 168, a move above could see prices testing 170.   

Zinc on MCX settled down -0.06% at 164.90 dropped from the day’s high as trader book profit after prices tested the highest price level in more than two weeks as investors sought to balance concerns about tightening supplies with uncertainty over Chinese demand.

A steady stream of news has encouraged the bulls recently, including a talk of a market deficit, an expected strike in major producer Peru and declining inventories. But monetary tightening in China has stoked worries about the appetite for industrial metals in its biggest market.

SHFE zinc inventories remained at an 8-year low as of June 16, despite a rise to 71,758 tonnes. When combined with market anticipation of improvement in demand from steel plants, LME zinc jumped to a two-week high on Monday.

Spot premiums on shrank in Shanghai, Tianjin and Guangdong markets on June 20, narrowing 20-50 yuan per tonne and 100 yuan per tonne from yesterday, respectively, in Shanghai and Guangdong. Zinc smelters in Shanghai sold proactively since zinc prices continue rising. Cargo holders in Guangdong were also enthusiastic to sell, but trading was quiet.

Base metals prices appear to be heading higher across the board, key now will be whether follow through buying gathers momentum, or whether the rebounds start to stall – but that may be a question for later in the week. For now they generally look well placed to push higher and the strong gains on the SHFE this morning bodes well. — Neal Bhai Reports

Zinc MCX Under Fresh Selling Support Key 162 | Gold Silver Reports | Neal Bhai Reports