Price retreats on profit-taking

摘要

Expectations of tightness in zinc's refined metal supply, combined with a softer dollar in early November, hadalready given the price enough of a boost to break through its $2,400/t resistance level even before marketsbegan to react positively to Trump's election victory. A sell-off in the US dollar in the immediate aftermath ofthe result was quickly reversed and the dollar then rallied strongly as initial caution gave way to optimism.Base metal prices then shrugged off US dollar strength to rally across the board, adding a good deal of frothto prices as they all reached year-to-date highs. Zinc, already investors' top pick, has been no exception. Itsprice has risen by almost $200/t since 1 November, reaching its highest 3-month settlement price in 6 yearsand an intraday trading high of almost $2,700/t this week.