Nickel futures were trading higher during evening trade in the domestic market on Monday as investors and speculators extended their positions in the industrial metal on surge in physical demand amid weakness in the US dollar after tepid US economic data and dovish remarks from the US Fed official on Friday.
The US consumer spending hardly surge in February amid delays in income tax refunds payment, however, the biggest annual rise in inflation in nearly 5 years supported expectations of further interest rate hikes this year.
Meanwhile, St. Louis Fed President James Bullard said on Friday that, the Fed could pause interest rate hikes when it begins shedding its bond holdings, a move that would have little effect on financial markets.
At the MCX, nickel futures for April 2017 contract is trading at Rs 654.40 per kg, up by 0.52 per cent, after opening at Rs 650, against a previous close of Rs 651. It touched the intra-day high of Rs 655 (at 17:19 hours).