Apply the here demonstrated parameters for the layer: Blending Options>Outer Glow



Blending Options>Inner Glow

 



Select now the Rounded Rectangle Tool (U) to represent a segment of metal pipe.

 



Place the pipe’s layer lower than the wheel’s layer on the layers’ palette. The layer’s parameters: Blending Options>Inner Shadow



Blending Options>Inner Glow



Blending Options>Gradient Overlay



Gradient’s parameters: