Fed announcement spurs zinc, bypasses lead

Zinc Investing News reports zinc price is spurred with the Fed’s recent announcement on purchasing treasuries.

The fed’s announcement was negative for the greenback, sending the US dollar Index on track for its worst week since September 1985. The dollar fell an additional 0.4 per cent, and has dropped every day since March 9, sliding a cumulative 6.4 per cent. Declines by the greenback reduce the cost of dollar- denominated commodities for holders of other currencies.

Metals are unlikely to sustain their gains, according to Barclays, because “an awful lot of this rally has been driven by factors including consumer restocking, Chinese buying and hedge fund short-covering.” Zinc added 0.9 per cent to $1,275 a tonne, paring a gain as far as $1,308, the highest intraday price since Jan 14. Lead fell 0.5 per cent to $1,318 a tonne .

For complete story, click this link. Follow developments in resource mining and exploration for free.Sign on to The Resource Stock Watch.