Market and product
Zinc to carry its bullish trend into August
Mumbai(Commodity Online): Zinc is strong enough to carry its bullish trend of July into August, according to monthly report by Religare Commodities.
Traders shall accumulate long positions in zinc in the range of Rs132-135/Kg, from a medium term perspective where targets of Rs151/kg can be eyed upon, beyond which the counter can further jump towards Rs165/kg as the next level to test.
Bulls were on a roller coaster and have successfully taken the game away from the grip of bears who managed to keep prices capped until May. At LME, prices seem to have formed a strong base around sub $2000/t level and look poised for a rally in coming months. The base metal looks fairly poised to extend this month's gains into next month, the report said.
Zinc prices advanced to a 35-month high at LME on speculation that demand will increase amid dwindling supplies and investors extended buying on forecasts of shortages of the metal due to mine closures and as a proxy for recovering global growth. Encouraging US jobs data and upbeat factory numbers from top consumer China reinforced expectations of a pick up in demand.
