Zinc up 0.64% on overseas cues, spot demand

Firm trend seen in base metals on LME on hopes US Fed will maintain interest rates near zero

Zinc futures was up by 0.64 per cent to Rs 109.65 per kg today as participants enlarged positions amid a firming trend overseas and better domestic demand.

At the Multi Commodity Exchange, zinc for delivery in November rose 70 paise, or 0.64 per cent, to Rs 109.65 per kg, with a business turnover of four lots.

The October contract rose 60 paise, or 0.56 per cent, to Rs 108.50 per kg in a business volume of 633 lots.

Marketmen said the rise in zinc futures was mostly in line with a firming trend in base metals at the London Metal Exchange (LME) as speculation that the US Federal Reserve will keep interest rates near zero for longer boosted the appeal of riskier assets such as commodities.