Zinc yesterday traded with the positive node and settled 0.88% up at 113.55 rose to a one-week high in thin trade rebounding from falls in the previous session, as encouraging data from China reinforced signs of a recovery in the economy of the world's top metals consumer. Still uncertainty about the US fiscal talks weighed on the outlook for industrial metals. Negotiations to avert $600 billion worth of tax hikes and spending cuts due to take effect in the new year have dragged on, with some US lawmakers voicing concerns on Sunday that the country would go over the "fiscal cliff" in nine days. But most risk assets were little changed on the last trading week of the year as most global investors bet Washington would reach an agreement to prevent the world's top economy from slipping into another recession. Market players remained focused on developments surrounding the fiscal cliff in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday. Without a deal, the US could fall back into recession and drag much of the world down with it. For today's session market is looking to take support at 112.9, a break below could see a test of 112.3 and where as resistance is now likely to be seen at 114, a move above could see prices testing 114.4.

Trading Ideas:

Zinc trading range for the day is 112.32-114.42.

Zinc gains after a solid reading on China's industrial sector underlined demand hopes for the world's top consumer of the metal.

Japan's government will pursue bold monetary policy, flexible fiscal policy and a growth strategy to encourage private investment.

China's outstanding external debt amounted to $770.83bn as of the end of September.