SHANGHAI, Feb. 3 (SMM) -- On Tuesday, LME nickel prices opened at USD 18,075/mt and closed at USD 18,400/mt, with the highest level at USD 18,425/mt and the lowest level at USD 17,886/mt. Daily trading volumes were1,469 lots and positions were 87,178 lots.
US dollar index declined for two days, hitting lowest level at 78.96 and closing above 79 after touching 79.53 due to eased concern over credit crisis in Europe and temporarily positive economic data from the US. Although US dollar closed above 79, US dollar index is still expected to fall in the near term, which will support base metal prices to a extend in the short term. However, prices will continue to fluctuate given the traditional low demand period temporarily and faltering confidence among investors. The US financial deficit became more and more serious, which will be the major factor hampering economy recovery in 2010. If the government wants to curb financial deficit, it will definitely tight credit, which will exert negative impact on economy recovery and employment. This dilemma will be focused by investors in the short term to forecast economic trend in the future, which will in turn shape price trend of base metals for a long time.
Yesterday, LME nickel prices didn't fall below the lowest price level on February 1st, showing confidence from long positions. It is expected that LME nickel prices will fluctuate on upward track further, with prices moving in the USD 18,000-18,550/mt range.
To contact the writer on this report: email@example.com
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: firstname.lastname@example.org