Nickel Leads Metals Rally as Goldman Sees Gains on Supply Issues

Nickel rallied to an eight-month high amid expectations for supply cuts in the Philippines, the top miner, and as the outlook for more economic stimulus buoyed metals. Zinc rose to the highest in more than a year, while copper producers including Freeport-McMoRan Inc. advanced.

Nickel climbed as much as 4.7 percent to $10,515 a metric ton. It will touch $12,000 in six months, according to a new baseline scenario from Goldman Sachs Group Inc. that assumes a quarter of Philippine output is lost over the period. The new government has said mines falling short of environmental and welfare standards will be shuttered, and has ordered an audit of operations.