Gold Silver Reports – ✅ Technically Nickel market is getting support key at 784 and below same could see a test of 775 level, And resistance key is now likely to be seen at 804, a move above could see prices testing 812.
Nickel on MCX settled down 1.59% at 790.90 on profit booking as speculation are high that global refined nickel production will increase from 1.89 Mt in 20 17 to 1.92 Mt in 2018.
This uptick in production will be driven by a recovery in Chinese, Russian and Australian production following a contraction for all these major producers over 2017 and will be aided by an improved price environment since H217.
Nickel prices are set to unwind in coming months as fundamentals loosen on the back of increased supply from Indonesia and subdued demand from China. Refined nickel prices will continue to lose steam in the coming months as overly-optimistic demand-side expectations from electric vehicle (EV) production begin to fade and fundamentals loosen.
A significant rally in prices took nickel from below 9 000/ton in June 2017 to above 13 000/ton in early November 2017, buoyed by a positive demand outlook for use in batteries for the growing electric vehicle market.
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However in line prices have come back down to 11295/ton and will continue to trend downwards in the coming months dragged by the realization among investors that any significant impact of EV’s on demand is still years away.
Further downside pressure on prices will emerge in the short term as the global nickel market shifts into a surplus. In the week ahead, gold prices will remain vulnerable to any rebound in the greenback as well as in increase in yields. With all eyes on the monthly U.S. employment report due Friday. – Neal Bhai Reports
