Industrial metal prices have been on the rise with nickel hitting its highest peak in two and a half years as a weaker dollar made metals cheaper for holders of other currencies.
Stronger than expected inflation in the United States spurred buying of equities and hard assets including metals, which protect against value erosion, said Societe Generale analyst Robin Bhar.
Benchmark nickel on the London Metal Exchange closed up 4.8 percent at $14,100 a ton after touching $14,135, its highest since May 2015.
In January, nickel broke free of a long-term downtrend since 2011 highs. A combination of surging China imports, tighter supply and fund interest are expected to sustain prices of the stainless steel ingredient.