SHANGHAI, Dec. 1 (SMM) -- LME nickel prices opened at USD 16,125/mt yesterday, with highest and lowest level at USD 16,400/mt and USD 15,999/mt, respectively, and finally prices ended at USD 16,355/mt. Total trading volumes reported 1,837 lots, and positions were 89,537 lots.
Market concerns over Dubai crisis eased, and market demand for US dollar risk-avoidance declined as well, and the US dollar index hit the highest level of 74.96 yesterday, with great pressure at 75, and showing a downward trend, which helped support base metal prices to move up. Meanwhile, crude oil prices recovered slightly, hitting the highest level of USD 78/barrel, which helped improve market confidence. Investors increased purchase volumes after commodity prices experienced declines last Friday, driving up base metal prices. In addition, the US dollar index is expected to weaken in the long run, and the expectations of inflation will also help support base metal prices to climb in the long term.
Although LME nickel market fundamentals remained weak, LME nickel prices still stood firm at USD 16,000/mt last Friday after significant declines, showing solid support at this level. SMM predicts LME nickel prices will move in the USD 16,100-16,700/mt range today.
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