Nickel jumps 4% as dollar declines, and demand rises

Nickel prices rose on Thursday as the dollar lost ground against a basket of major rivals and amid optimism for demand.

US producer prices rose 6.2% in December, below estimates of a 6.8% increase, and down from 7.3% in the previous reading.

Core prices, excluding food and energy, rose 5.5%, below estimates of 5.9%, and down from 6.2% in the previous reading.

US retail sales fell 1.1% in December, missing estimates of a 0.8% decline, and worsening November's 1% drop.

Core sales, excluding transportation, fell 1.1%, missing estimates of a 0.5% increase, and compared to November's 0.6% drop.

Such data shows US inflation is indeed slowing down, paving the way for a slower pace of policy tightening by the Fed.

Otherwise, industrial metals such as nickel, used in the steel and electric car industries, were boosted after China eased recent restrictions, in turn opening the economy up once gain. 

The dollar index fell 0.2% to 102.1 as of 15:05 GMT, with a session-high at 102.4, and a low at 102.1.

Nickel spot prices rose 3.8% to $27.6 a tones as of 15:06 GMT.