Mixed Performance in Commodities Market Last Week, One Commodity Above Support Level – Zinc

Global Commodity Market Wrap-Up

The metals market posted a mixed performance last week as traders balanced improving momentum with ongoing tariff-related uncertainties. Precious metals attracted safe-haven flows, with gold advancing 1.25% and silver climbing 2.82%. In the industrial metals segment, gains were more measured, as copper rose 0.24%, lead added 0.69%, and zinc increased 0.85%. While tariff developments between major economies continue to shape sentiment, investor focus is now shifting to the upcoming U.S. inflation data, which could play a decisive role in guiding market expectations and near-term volatility.

In the energy space, natural gas prices fell 3.72%, pressured by ample supply and subdued seasonal demand. In contrast, crude oil climbed 1.37%, supported by trade-related concerns and OPEC’s production stance. Within agriculture, U.S. sugar edged higher by 0.24%, despite broader softness across the sector. Overall, these moves underscore persistent supply-demand imbalances and the market’s heightened sensitivity to economic and geopolitical developments, which are likely to shape price action in the coming days.

Global commodity markets delivered a mixed performance last week as investors navigated macroeconomic uncertainty and shifting tariff dynamics. Precious metals held firm, with gold and silver consolidating near recent highs, supported by cautious sentiment and evolving interest rate expectations. In energy, crude oil retreated due to concerns over global demand and trade pressures, while natural gas dropped sharply amid persistent oversupply. Among base metals, copper advanced on the back of renewed industrial demand, whereas agricultural commodities traded largely sideways, reflecting stable consumption trends and favorable weather conditions. Overall, sentiment remained cautious, with markets awaiting upcoming economic data releases and trade policy developments that could set the near-term direction.

The upcoming Micro and Macroeconomic events that may impact on market sentiments include an update New Home Sales, Prelim GDP q/q, Initial Jobless Claims and Revised UoM Consumer Sentiment.

Having understood the global commodities’ performance over the past week, taking cues from major global economic events, and based on technical analysis, noted below is the recommendation with generic insights, entry price, target prices, and stop-loss Zinc  November Future (LME: CMZNX25) for the next 2-4-week duration:

Zinc  November Future (LME: CMZNX25)

Price Action and Technical Indicator Analysis:  Zinc November Futures prices are trading above a key rising trendline support and sustaining well above it, reinforcing a positive structure. The contract also remains above the 21-period SMA, which continues to serve as a crucial support zone. The RSI at 54.53 signals improving momentum. As long as prices hold above the support area, the outlook stays constructive, while a decisive breakout above resistance could open the way for further upside in the near term. Broader market sentiment will remain a key driver of direction.

Now the next crucial resistance levels appear to be at USD 2960.00 and USD 3050.00, and prices may test these levels in the coming periods (2-4 weeks).

As per the above-mentioned price action and technical indicators analysis, Zinc  November Future (LME: CMZNX25) is looking technically well-placed for a ‘Buy’ rating. Investment decisions should be made depending on an individual’s appetite for downside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. Technical summary of the ‘Buy’ recommendation is as follows:

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on employment, inflation, GDP, WASDE report, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact commodities’ prices:

Futures Contract Specifications

Disclaimers

Related Risks: Based on the technical analysis, the risks are defined as per risk-reward ratio (~0.80:1.00), however, returns are generated within a 2-4 weeks’ time frame. This may be looked at by Individuals with sufficient risk appetite looking for returns within short investment duration. The investment recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the commodities has not been considered in the decision-making process. Other factors which could impact commodity prices include market risks, regulatory risks, interest rates risk, currency risks, and social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: Individuals can consider exiting from the commodity if the Target Price mentioned as per the Technical Analysis has been achieved and subject to the factors discussed above.

Note 3: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the commodity. Commodity with high volumes is more liquid compared to the lesser ones. Liquidity in commodity helps in easier and faster execution of the order. 

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or Selling interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or Selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Risk Reward Ratio: The risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~80% Stop Loss of the Target 1 from the entry point.

The reference date for all price data, volumes, technical indicators, support, and resistance levels is 22^nd August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note: Trading decisions require a thorough analysis by individuals. Technical reports, in general, chart out metrics that may be assessed by individuals before any commodity evaluation. The above are illustrative analytical factors used for evaluating the commodity; other parameters can be looked at along with additional risks per side.