$X=\bar Z$ so $X$ is the smallest closed set containing $Z$.
Definition 1:
In a topological space $X$ a set $A$ is closed iff it's complementary set is open.
Definition 2:
A point $x$ of a set $A$ is a limit point of $A$ if every open set $Y$ containing $x$ contains other points in $A$.
claim 1:
A closed set $A$ contains all it's limit points.
proof:
suppose $x$ is a limit point of $A$ not in $A$, then $x\in A^c$ which is open.
hence there exists a ball $B_r(x)\subseteq A^c$.
contradiction.
$\square$
Definition 3:
$\bar Z=\cap X_Z$ where every $X_Z$ is a closed set containing $Z$.
claim 2:
the set $T$ containing all limit points of $Z$ is closed.
proof:
let $x_0$ be a limit point of $T$.
then every ball containing $x_0$ has points of $T$
let $d(x,x_0) < \frac{\epsilon}{2}$
then there exists $x_1\in Z$ s.t.
$d(x_1, x)<\frac{\epsilon}{2}$.
using triangle inequality:
$d(x_0,x_1)<d(x_0,x)+d(x,x_1)<\epsilon$.
thus $x_0$ is a limit point of $Z$.
since $T$ contains all it's limit points it is closed.
$\square$.
claim 3:
Let metric $X=\bar{Z}$ then
every $x \in X$ is a limit point of $Z$.
proof:
$T$ be the set containing all limit points of $Z$, then $X\subseteq T$ since $X$ is the smallest set closed set containing $Z$.
but every closed set containing $Z$ contains all the limit points of $Z$.
Thus $X=T=\bar Z$.
$\square$.
Thus every point in $X$ is a limit point of $Z$.
thus:
$y\cap Z\neq \emptyset$.