Strike fears help boost nickel prices

In metals markets on Friday, gold dropped close to $3 to trade at $643.90/$644.90 per troy ounce. It had gone to a nearly six-month high of $654 during Thursday’s session amid rumors that the International Monetary Fund had taken a decision to change guidelines on the accounting for central bank gold loans. The IMF denied the rumors and said it was still looking at the issue.

Three-month nickel hit a new record high for the eighth session in a row when it briefly rose to $38,800 per tonne on Friday on the London Metal Exchange after both sides at the Sudbury nickel mine in Canada rejected offers ahead of a January 31 strike deadline. The possibility of a strike comes at a time when inventories remain at about a day’s worth of worldwide consumption. Elsewhere, three-month aluminium dropped $5 to $2,787 per tonne, $110 below the cash price.