![Zinc set for its first weekly gain in one month. Will this trend continue?](https://commoditysamachar.com/wp-content/uploads/2023/06/Will-This-Trend-Continue-1024x576.png)
Our report released on 29 May 2023, has proven to be accurate. With Zinc prices moving towards the first projected level of 220.00. Prices recovered from the weekly low 206.45 and made a high 217.35, before closing at 214.25. 🙂
Base metals had a positive week last week. Zinc was the best performer among them. It was able to gain virtually two and a half per cent. That was the first weekly gain since 1 May 2023, supported by a weaker dollar, amid Fed rate speculation.
However, some disappointing economic indicators from China restricted further gains in base metals prices.
Anticipation of a pause in the Fed interest rate hikes this month sent the dollar to a one-week low, making it more alluring to consumers of the item with a dollar price.
The data showed that Chinese consumer inflation shrank in May from the prior month. Inflation among producers decreased at its fastest rate in seven years. This came after a series of dismal economic indicators from China during the previous two weeks.
This might encourage the Chinese government to implement additional encouraging policies in the upcoming months. However, the yuan would probably drop much more as a result, helping the dollar.
Further, A positive statement from the Governor of China’s Central Bank supported the metals prices on the weekend. China is confident, capable of achieving GDP and qualified to do so. Additionally, the “Two Sessions” set other objectives, and the YoY Growth Rate of CPI will return to above 1% by December. Governor of China’s Central Bank Says on Friday.
Yi Gang, governor of the People’s Bank of China, emphasized that the production, distribution, circulation, and consumption of the real economy are a cyclical process. And we need to do a methodical, dialectical investigation of viewpoints.
 The Federal Reserve Bank and European Central Bank are due to meet next week. Which will be the key driver of metals prices.
Technical Outlook
![](https://commoditysamachar.com/wp-content/uploads/2023/06/ZINC1_2023-06-11_08-58-02.png)
Zinc prices settled at 214.25, with its first weekly gains since 27 February 2023. Prices continued falling from the peak of 304.55 (Mid January 2023). Recently prices dropped towards 204.85, the lowest level after February 2021.
Prices recovered from the weekly low 206.45 and made a high 217.35, before closing at 214.25.
Our report released on 29 May 2023, has proven to be accurate. With Zinc prices moving towards the first projected level of 220.00.
The above wave drawn on the chart is showing, Zinc prices completed corrective wave C. Now, prices are expected to witness a pullback in the near future. On the upside, 218.50 will act as an immediate hurdle; a break above will attract fresh buy for the target 225-230.00-235.00.
Else, traders should wait for the deep towards 210-208.00, the stop loss will be below 201.50 on a closing basis.
On the other side, this wave will continue if it can sustain a close below 201.50 on a closing-only basis.