Base Metal Tips | Zinc logs mild gains on physical demand

Base Metal Tips | Zinc futures were trading tad higher during noon trade in the domestic market on Tuesday amid a pickup in physical demand for the industrial metal in the domestic spot market.

However, the gains in the base metal were trimmed by tepid US housing and factory data which raised doubts over the strength of the world’s biggest economy to withstand Federal Reserve policy tightening, likely to begin this month, clouding the demand outlook for Zinc.

US pending home sales index climbed by only 0.2 per cent in October from September, while the Chicago PMI, a business barometer, fell to 48.7 this month from 56.2 in October, with a reading below 50 signaling contraction.

At the MCX, Zinc futures for December 2015 contract is trading at Rs 104 per 1 kg, up by 0.10 per cent after opening at Rs 104.45, against the previous closing price of Rs 103.90. It touched the intra-day high of 104.45 (At 12:25 PM).