SHANGHAI, Oct. 9 (SMM) – LME nickel prices opened at USD 16,901/mt overnight. As the US dollar index rose to 85.8 during Asian trading hours, LME nickel prices met resistance at USD 17,000/mt. After the Fed announced its September policy meeting minutes, the US dollar index plunged to 85.2, driving up gold prices to USD 1,220/oz. But LME nickel prices extended declines on growing inventories, and closing the day down 3.29% at USD 16,427/mt. Trading volumes decreased 350 to 3,108 lots, and total positions increased 2,787 to 202,475 lots. LME nickel inventories grew 282 to 364,500 mt.
LME nickel prices are expected to rally today as the US dollar index slumped, but will remain weak on growing inventories. Spot nickel prices in Shanghai will fall in response.