Zinc prices came under sharp selling pressure on Friday, extending losses in line with the steep correction seen across the metals complex. MCX zinc futures fell nearly 4% to around Rs 327 per kg, hitting the lower circuit during the session as risk-off sentiment intensified in commodity markets.
The fall in zinc followed heavy losses in precious metals such as gold and silver, which saw aggressive profit booking after recent record highs. A stronger US dollar, rising global bond yields, and growing expectations that US monetary policy could remain tighter for longer have weighed on the entire metals space. Base metals, including zinc, copper, and aluminium, also faced pressure as traders reduced exposure amid heightened volatility and concerns over slowing industrial demand.
Market participants noted that the move was largely driven by sentiment rather than zinc-specific fundamentals, with forced unwinding of leveraged positions accelerating the downside. The sharp decline reflects a broader trend of risk reduction across commodities after a period of strong rallies in recent weeks.
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