Nickel extends gains above the $20,000 mark

Nickel prices rose on Wednesday, as the US dollar held against most major currencies, thanks to the recovery in global demand for metals and commodities.

Commodity prices rose recently thanks to the global economy's gradual recovery from the coronavirus pandemic, which leads to increased spending and demand, and causes high inflation rates.

The rising prices led to a spike in inflation in the US and Europe led their central banks to hint at reducing the pandemic quantitative easing and asset purchases programs.

Nickel, palladium and platinum are linked with the auto industry, and their prices received support after many companies started to work on the shortage of electronic chips.

The dollar index fell against a basket of major currencies by less than 0.1% to 93.7 points as of 13:42 GMT, after hitting a high of 93.8 points and a low of 93.6 points.

Nickel spot prices rose 1.1% to $20,222 per tonne as of 13:52 GMT.