Gold Silver Reports — Nickel MCX Under Fresh Selling Support Key 548 — Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 7.31% to settled at 47195 while prices down 12.6 rupees.
Now Nickel MCX is getting support at 554 and below same could see a test of 548 level, And resistance is now likely to be seen at 572, a move above could see prices testing 588.
Nickel on MCX settled down -2.19% at 564 tracking weakness from LME nickel which closed 2.1 percent lower at $8,790. Earlier this month it touched a one-year low at $8,700 a tonne on expectations of rising supplies and weak demand from stainless steel mills.
The nickel market, which had moved into deficit between supply and demand last year and in the first half of this year, is likely to move into small surplus during the remainder of 2017. The market is waiting for the Fed meeting and Chinese economic data, China’s economy is expected to show steady growth in May, buoyed by solid gains in trade and investment as economic ties with the United States take a positive turn and infrastructure spending cushions domestic growth.
While Investors are now focusing on the upcoming 2-day Federal Open Market Committee (FOMC) meeting which starts on 13th June looking for hints of its interest rate projections. Earlier this year, the Federal Reserve announced there could be three or four rate hikes this year.
The central bank is widely expected to raise interest rates by 25 basis points this week, but a recent weak run of US inflation data and a lack of progress on the Trump agenda has caused doubts among market observers that the Fed’s 2% inflation goal will be met by the end of this year. — Neal Bhai Reports
Nickel MCX Under Fresh Selling Support Key 548 | Gold Silver Reports