Zinc Sinks Most in Six Weeks After Big Rally

Bloomberg reported that London Metal Exchange zinc for three-month delivery sank the most in six weeks after climbing to its highest price since August 2011 just yesterday. Speculation is rife that “the rally … lifted prices too far.”

As quoted in the market news:

‘We are seeing a technical reaction to recent gains, with some profit taking in a thin market,’ Michael Turek, a senior director at Newedge USA LLC in New York, wrote in an e-mail. ‘There are some who are questioning the sustainability of higher prices.’

Zinc for delivery in three months dropped 1.8 percent to settle at $2,366 a metric ton at 5:50 p.m. on the LME, the biggest loss since June 12.

Click here to read the full Bloomberg report.