Gold Silver Reports — Nickel MCX Resistance at 688 — Nickel on MCX settled up 1.18% at 678 as support seen after LME Nickel prices is increasing from environmental licenses potentially impacting supply. The price of nickel hit a one-year high in August and has surged more than 10% in the third quarter. The strong rise in nickel prices was mainly due to supply shortages after the suspension of operations at eight mines in the Philippines. The Philippine government imposed restrictions on the mining industry that don’t comply with international standards. The closure of these mines has affected 2% of global supply.
Support also seen as growing expectations the U.S. Federal Reserve will hold U.S. interest rates steady kept the dollar under pressure, but worries about Chinese demand limited gains. A weaker U.S. currency makes dollar-denominated commodities cheaper for non-U.S. firms, a relationship funds use to generate buy and sell signals. Data on Tuesday showing activity in the U.S. service sector slowed to a 6-1/2 year low in August reinforced expectations the Fed would not move at its Sept. 20-21 meeting. Meanwhile China is the world’s top consumer of industrial metals.
Strong lending by Chinese banks in the first half of the year boosted investment and output in China’s economy, but July data showed a drop to 463.6 billion yuan from 1.38 trillion in June. Metals markets are looking ahead to China’s trade data due on Thursday for clues to growth and demand prospects. Technically market is getting support at 672 and below same could see a test of 664 level, and resistance is now likely to be seen at 688, a move above could see prices testing 692. — Neal Bhai Reports