Nickel prices rose on Wednesday as industrial metals waver, with the dollar muscling up against major rivals alongside US treasury yields. 

Interest rate-sensitive US treasury yields rose yesterday as markets assess latest US economic growth data, which were much better than expected.

US two-year treasury yields rose 6 basis points to 5.119%, the highest since 2007 as markets buy up safe havens. 

Markets continue to monitor the situation in the Middle East as the situation continues to deteriorate in the Hamas-Israel war.

Otherwise, the dollar index rose 0.1% as of 16:13 GMT to 106.2, with a session-high at 106.5, and a low at 106.1. 

Nickel spot prices rose 0.4% as of 16:14 GMT to $18.11 thousand a tonne. 

Global oil prices rose on Wednesday for the first time in four days, holding above one-week lows on hopes for improving demand in the US, the world's largest fuel consumer.

The gains came after strong US manufacturing and services data, and following initial data that showed a dip in US crude stocks. 

Traders now await official dats on US crude stocks from the Energy Information Administration later today. 

Global Oil Prices

US crude rose 0.6% to $84.09 a barrel, while Brent rose 0.75% to $87.67 a barrel, with a session-low at $86.73.

US crude lost 2.8% on Tuesday, the third loss in a row, marking a two-week trough at $82.99, while Brent shed 3.7% to $86.43 a barrel, the lowest since October 13. 

Such losses came as concerns about supply disruptions in the Middle East faded amid diplomatic efforts to contain the Hamas-Israel fight. 

US Demand

Recent US data showed the manufacturing sector went into growth in October for the first time since April, while the services sector expanded unexpectedly this month.

Such data reflects strong US economic growth, which could lead to higher fuel demand in the US.

US Stocks 

Initial data from the American Petroleum Institute showed commercial crude stocks fell 2.7 million barrels last week, passing estimates of a 0.5 million barrels drawdown. 

Now traders await official EIA data later today, expected to show a drop of 0.5 million barrels. 

Euro fell in European trade on Wednesday against a basket of major rivals, extending losses for the second day against yen and backing off 15-year peak on active profit-taking. 

Euro is pressured by recent Euro zone data which indicated the economy is falling into recession faster than expected.

EUR/JPY

EUR/JPY fell 0.2% to 158.40, with a session-high at 158.93, after losing 0.65% yesterday, the first loss in four days, and the largest since October 3 on active profit-taking after marking 15-year highs at 159.92. 

Recession

Recent European data showed the manufacturing and services sectors shrank in October, flaming concerns of recession during the fourth quarter.

The European economy is undergoing one of its worst periods of contraction as spending wanes and the Chinese economy weakens.

Thus the European Central Banks has strongly hinted last September that no more interest rate hikes will be announced.

The 160 Yen Barrier

The 160 yen barrier continues to hold ground, with Japanese authorities likely intervening if threatened to underpin the currency. 

Japanese authorities indicated it'll stand on the sidelines unless yen weakens too excessively against its European or US rivals. 

Gold prices fell in European trade on Wednesday for the third straight session off five-week highs on active profit-taking.

The dollar rose against a basket of major rivals, pressuring dollar-denominated metals and commodities as markets await more clues on the likely path ahead for US monetary policies. 

Gold Prices Today

Gold prices fell 0.15% to $1,968 an ounce, with a session-high at $1,977, after losing 0.1% on Tuesday, the second loss in a row on profit-taking off a five-month high at $1,977.

The Dollar

The dollar index rose 0.1% on Wednesday, extending gains for the second day against a basket of major rivals. 

The gains came after positive US manufacturing and services data, in a sign of solid US growth in the fourth quarter.

Such data underpinned prospects of another 0.25% interest rate hike before the year end. 

US Rates

Chances for another 0.25% US interest rate hike in November stood unchanged at 2%, while odds for a similar hike in December stood at 25%. 

Powell

Later today, Fed Chair Jerome Powell will speak in Washington DC, and could offer clues on the path ahead for US policies. 

The SPDR 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 860.07 tonnes.