Nickel yesterday traded with the negative node and settled -0.05% down at 962.30 as mixed sentiments seen in the market also chinese stainless steel prices closed flat again. For the fifth consecutive day, the price of Chinese ferro-chrome held flat as well, and the price of Chinese ferro-moly remained steady. Futures supported after official data showed that consumer price inflation in China accelerated by 2.5% in December, up from 2% in November and above expectations for a 2.3% increase. Politically sensitive food costs accelerated 4.2% in December from a year earlier. The rise in Chinese food costs was driven by a 14.8% increase in the price of vegetables. The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world's second largest economy. Loose monetary policies employed by central banks in the US, Europe and China have helped boost demand in recent years as investors sought the precious metal as a hedge against currency debasement. In the week ahead, gold traders are expected to remain focused on the outlook for Federal Reserve monetary policy, as well as political developments in the US, with negotiations on raising the US debt ceiling still to come in February. For today's session market is looking to take support at 961.6, a break below could see a test of 961.4 and where as resistance is now likely to be seen at 962.9, a move above could see prices testing 963.6.

Trading Ideas:

Nickel trading range for the day is 961.03-964.

Nickel settled down as China's central bank may tighten liquidity due to growth in CPI

Italian government bond auction was successful with 3-year bond yield slipping to the lowest level in three years

China's consumer price index rose more than expected in December, official data showed.