Zinc rallied to its highest in nearly 15 months

METALS-Metals rally as dollar drops, zinc hits 15-mth high on shortages


LONDON, Aug 10 (Reuters) - Zinc rallied to its highest in nearly 15 months on Wednesday as investors continued to fret over a shortage of mine supply, while other metals surged amid sharp falls in the dollar.
The U.S. dollar fell broadly on Wednesday as U.S. Treasury yields fell and investors waited on a speech by Federal Reserve Chair Janet Yellen later this month. A weaker dollar makes dollar-priced metals cheaper for non-U.S. investors.

"In copper, it appears to be exogenous factors like the dollar," said Standard Bank analyst Leon Westgate.
On zinc, he said prices still had further to rise: "(Some investors) are saying they want to see premiums tighten up. I imagine we're going to see that towards the end of this year. At that point anyone still sitting on the fence will jump in."

Three-month zinc on the London Metal Exchange ended up 0.5 percent at $2,286 a tonne, having earlier hit its highest since mid-May 2015 at $2,314.50. Prices are up 43 percent this year.
"It seems the market has a big zinc buying order through," a trader said.

http://www.cnbc.com/2016/08/10/reut...drops-zinc-hits-15-mth-high-on-shortages.html