Zinc settled 0.09% up at 108.60 but overall market was trading with a mixed sentiments as investors were concerned over US debt ceiling and the outlook of China's demand for metals. US December retail sales were up 0.5% MoM, better than the forecast, and reflecting strong consumer spending at the end of 2012. The growth of seasonally adjusted commercial inventories in November was 0.3%, with USD 1.62 trillion, and in line with expectations. US December PPI was down 0.2% MoM, larger than the forecast of 0.1%, showing low inflationary pressure and the US Federal Reserve still has room to push additional easing policies. Besides, January manufacturing index of New York Federal Reserve was -7.78, much lower than the expected 0.00. The manufacturing has been contracting for a sixth straight month due to the sharp slide of new orders and shipping index. The World Bank lowered expectation for global economic growth in 2013 to 2.4%, compared to the previous 3%. The famous rating agency Fitch said ratings of US, UK, France and Spain will likely be downgraded. If the medium-term plan for spending cuts in the US lacks reliability, its rating will be lowered. In yesterday's trading session zinc has touched the low of 107.6 after opening at 108.55, and finally settled at 108.6. For today's session market is looking to take support at
107.9, a break below could see a test of 107.2 and where as resistance is now likely to be seen at 109, a move above could see prices testing 109.4.

Trading Ideas:

Zinc trading range for the day is 107.2-109.4.

Zinc settled 0.09% up but overall market was trading with a mixed sentiments as investors were concerned over US debt ceiling

U. S. retail sales rose more than expected in December as Americans shrugged off the threat of higher taxes

Credit ratings firm Fitch said earlier the United States faces a "material risk" of losing its triple-A status