Reaching a high of $14,635 per tonne over the morning, nickel’s recent strength has resulted in the metal breaking through its nearest resistance level at $14,500 per tonne.
The metal traded below $14,000 per tonne for much of early May, partly due to a leveling out of market sentiment after the easing of sanction speculations, coupled with a strengthening dollar.
“The resurgent dollar has put a halt to price gains, but we feel this is likely to be temporary. The underlying fundamentals are bullish, and large call-option exposure suggests upside price risks remain,” James Moore, analyst at Metal Bulletin, said.
“Further resistance is seen towards $15,000 per tonne but we maintain a bullish outlook overall,” he added.
Showing similar strength, aluminium’s three-month price continues to trade firmly above $2,300 per tonne.