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- Benchmark nickel on the London Metal Exchange surged nearly $500 in about 10 minutes in the morning, spurred by Chinese investors covering short positions, traders said, continuing the rally in the afternoon.
- That sent nickel surging 5 per cent to a peak of $12,495 a tonne, the highest since April 30, before paring gains in closing open outcry activity to a bid of $12,370, a rise of 4 per cent.
Published on: May 26, 2019
Nickel — the key metal mined in Sudbury — spiked to its highest level in over two weeks last week as bearish investors covered positions, while other industrial metals gained on a weaker American dollar and hopes for a U.S.-China trade deal.
World stocks edged higher and oil prices also recovered from bruising falls last week after U.S. President Donald Trump nurtured hopes of progress in U.S.-China talks.
“With the stock markets popping up a tad this morning and also the dollar strength pausing, that’s giving the market an excuse to cover some shorts ahead of the weekend, which is a long weekend in the UK and US,†said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“But we are by no means out of the woods yet, if anything, it may just be the market pausing before we hit the next headline.â€
Benchmark nickel on the London Metal Exchange surged nearly $500 in about 10 minutes in the morning, spurred by Chinese investors covering short positions, traders said, continuing the rally in the afternoon.
That sent nickel surging 5 per cent to a peak of $12,495 a tonne, the highest since April 30, before paring gains in closing open outcry activity to a bid of $12,370, a rise of 4 per cent.
Put another way, nickel finished At US$5.5980 on Friday, up 0.2161 cents from the day before.
The move higher in nickel gained steam as it broke through its 200-day moving average, a key technical level, traders said.
* NICKEL FORECAST: Fitch on Friday revised down its London three-month nickel average price forecast for 2019 to $13,250 a tonne, from $14,500 estimated earlier, on rising global economic risks, an escalating trade dispute and disappointing refined nickel demand from China so far this year.
* COPPER: Three-month LME copper (another key metal in Sudbury) climbed 0.5 per cent to finish at $5,955 a tonne in closing rings, but on a weekly basis it marked a sixth consecutive decline.
Source: https://www.thesudburystar.com/news/local-news/nickel-prices-spike-to-its-highest-level-in-more-than-two-weeks
Tags: CSE, nickel, nickel demand, small cap stocks, stocks, tsx, tsx-v