Nickel rises, shrugs off global demand fears

Nickel futures rose on Monday, as the US dollar fell against most currencies, shaking off global demand fears.

Nickel gained a lift from signs of the recovery of global economies, following the reopening measures after months of closure due to the coronavirus crisis.

The signs for improved nickel demand started to appear from the steel industry after factories in China, the US and other countries began to reopen.

While analysts fear a second wave of coronavirus, after infections surged in the US and China, which may lead to the return of restrictions and lockdowns.

The dollar index fell against a basket of currencies by 0.3% to 97.3 points as of 13:35 GMT, after it hit an intraday high of 97.7 and a low of 97.2.

Nickel spot futures rose 0.7% to trade at $12,855 a tonne as of 13:44 GMT.