The US dollar index overnight rose to 81.3, weighing down LME zinc prices to open at USD 2,379/mt. The US dollar index fell slightly below 81 later, but LME zinc prices failed to rally as Asian investors were quiet before the Chinese New Year holiday. LME zinc prices finally closed at USD 2,372/mt below the 10-day moving average. Zinc yesterday traded with the negative node and settled -2.08% down at 108.4. Some support had been seen from the LME stock also which came down by -25mt, the total stock at LME is now at 700950mt. In yesterday's trading session zinc has touched the low of 108 after opening at 109.9, and finally settled at 108.4. For today's session market is looking to take support at 107.4, a break below could see a test of 106.5 and where as resistance is now likely to be seen at 109.9, a move above could see prices testing 111.5. Trading Ideas: Zinc trading range is 106.5-111.5. Zinc was set to experience the largest amount of buying of around 150K tns. Zinc fell more than 3% at one point, and was at $2,376 a tonne, battered by systems-based fund selling. Zinc daily stocks at Shanghai exchange came up by 2249 tonnes

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