Nickel settled 0.53% up at 901.70 rose on reports that the EC will unveil a new government bond-buying program to control the euro zone debt crisis. The euro rallied versus the dollar, and all basemetal surged after reports suggested the ECB may buy unlimited amounts of short-term government debt to ease the region's financial crisis. The ECB said in August it would start buying Spanish and Italian government bonds again to ease pressure on those countries' borrowing costs, but only if they sought help from the euro zone's rescue fund and met strict conditions. Stimulus measures intended to relaunch economic growth would strongly benefit industrial metals demand growth, which has recently slowed down together with industrial activity in most regions. A survey published showed the euro zone is likely to have slipped back into recession in the current quarter as the bloc's private sector suffered a 7month of contraction as new orders dwindled. Investors also hoped China would attack slowing growth with aggressive stimulus measures. So far there have been moderate measures, including announcements this week about infrastructure spending, notably from the Ministry of Railroads. For today's session market is looking to take support at 894.4, a break below could see a test of 887.2 and where as resistance is now likely to be seen at 906.4, a move above could see prices testing 911.2.

Trading Ideas:

Nickel trading range for the day is 887.23-911.

Nickel ended with gains boosted by Draghi's new round of bond purchasing program

Draghi has said firmly that the main responsibility of the ECB is to intervene in bond markets

According to two officials from the European Central, the ECB will purchase bond unlimitedly.