London Metal Exchange (LME) nickel futures continued their upward trend for the fourth consecutive session, rebounding toward the US$18,000 level. Growing expectations of a Middle Eastern peace accord pulled oil prices down to a three-month low, cooling global inflation anxieties. This change improved market risk appetite and weakened the US dollar, allowing nickel to log its highest level in a week.
Macroeconomic support remains intact as anticipation builds that the US Federal Reserve will hold interest rates steady this month. This optimism helped pare some of the losses sustained earlier in June, even as LME-monitored nickel inventory levels registered a recent single-day increase, rising by 942 tons to 275,874 tons.
However, full recovery faces hurdles from underlying market fundamentals. Slow seasonal demand combined with high stockpiles exceeding 270,000 tons caps immediate upward momentum, pointing to a volatile, range-bound outlook for the metal in the short term.