Nickel tumbles below $17,000 under pressure from dollar
Nickel prices fell on Wednesday as the dollar rose against most major rivals, in turn pressuring metals overall.
The nickel market is sending out mixed signals due to supply disruptions and Chinese economic maneuvering.
Nickel November futures rose 3.4% in Shanghai to 135470 yuan a tone, reaching a high at 138800 yuan after China announced new measures to boost the economy.
Conversely, nickel three-month futures at the London Metal Exchange fell by 1.2% to $17,830 a tone.
The division in prices is partly due to Vale’s nickel factory supply disruption in Madagascar as the Ambatovy pipeline was damaged.
Other metals such as aluminum and zinc gained ground in Shanghai, however the same metals dropped in London, but demand on industrial metals remains solid overall, led by Chinese measures to combat recessionary pressures.
Otherwise, the dollar index rose 0.4% as of 14:57 GMT to 104.4, with a session-high at 104.5, and a low at 104.09.
Nickel spot prices fell 0.1% in American trade as of 15:08 GMT to $16.28 thousand a tone.
Bitcoin backs off three-month high under pressure from US yields
Bitcoin lost ground on Wednesday away from three-month highs, amid active profit-taking, while US 10-year treasury yields expand gains.
Prices
Bitcoin fell 1.8% at Bitstamp today to $66160, with a session-high at $67409.
On Tuesday, bitcoin rose 0.1% after a 2.4% drop in the previous day, on profit-taking away from a three-month high at $69487.
Crypto Market Value
The market value of cryptocurrencies fell by over $40 billion on Wednesday to a total of $2.396 trillion, as both ethereum and bitcoin sustain losses.
US Yields
US 10-year treasury yields rose 0.7% on Wednesday on track for the third rise in a row, hitting a three-month high at 4.24% and bolstering the dollar’s standing.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November fell from 92% to 87%, while the odds of maintaining rates unchanged stood at 13%.
US Elections
A new poll by Reuters-Iposos showed Kamala Harris ahead by a 46-43% margin against Donald Trump in a presidential election tieup.
Trump is viewed as more supportive of cryptocurrencies and more lenient with their regulations.
Dollar extends gains to 2-1/5 month highs as US yields rally
The US dollar gained ground in European trade on Wednesday against a basket of major rivals, extending gains for the third straight session and hitting 2-⅕ month highs as US 10-year treasury yields expanded their gains.
The advance comes after bullish remarks from some Fed officials, which hurt the odds of a Fed interest rate cut in November.
The Index
The dollar index rose 0.3% today to 104.41, the highest since August 2, with a session high at 104.09.
The index rose 0.1% on Tuesday, the second profit in a row against a basket of main currencies.
US Elections
A new poll by Reuters-Iposos showed Kamala Harris ahead by a 46-43% margin against Donald Trump in a presidential election tieup.
US Yields
US 10-year treasury yields rose 0.7% on Wednesday on track for the third rise in a row, hitting a three-month high at 4.24% and bolstering the dollar’s standing.
The gains come after strong US data and bullish remarks from Fed officials last week.
Dallas Fed President Lorry Loan said she’s confident of the economy’s stability and strength, but called for caution nonetheless and for gradual policy easing.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November fell from 92% to 87%, while the odds of maintaining rates unchanged stood at 13%.
Now investors await more speeches by Fed officials, and important data later this week about major sectors in the economy and unemployment claims.
Gold prices scale a new record high above $2750
Gold prices rose in European trade on Wednesday, and traded above $2750 an ounce for the first time ever as haven demand on the precious metal accelerates before the US presidential elections.
The gains come despite the continuous rise by US 10-year treasury yields following bullish remarks from some Fed officials, which hurt the odds of a Fed interest rate cut in November.
Prices
Gold prices rose 0.35% today to $2758 an ounce, the highest ever, with a session-low at $2738.
On Tuesday, gold prices rose 1.1%, marking the fifth profit in six days on strong haven demand.
US Elections
A new poll by Reuters-Iposos showed Kamala Harris ahead by a 46-43% margin against Donald Trump in a presidential election tieup.
US Yields
US 10-year treasury yields rose 0.7% on Wednesday on track for the third rise in a row, hitting a three-month high at 4.24% and bolstering the dollar’s standing.
The gains come after strong US data and bullish remarks from Fed officials last week.
Dallas Fed President Lorry Loan said she’s confident of the economy’s stability and strength, but called for caution nonetheless and for gradual policy easing.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November fell from 92% to 87%, while the odds of maintaining rates unchanged stood at 13%.
SPDR
Gold holdings at the SPDR Gold Trust rose 6.61 tonnes yesterday to a total of 895.24 tonnes, the highest since August 2023.