FX.co ★ Uranium Rises to 7-Month High

Uranium futures in the United States climbed to $79 per pound, continuing the upward trend that began in mid-June. This increase is attributed to renewed buying interest from physical funds. Notably, the Sprott Physical Uranium Trust announced its intention to purchase approximately $200 million worth of physical uranium, double the amount outlined in its agreement with Canaccord Genuity. Historically, acquisitions by Sprott, which predominantly holds its uranium in the form of yellowcake, have often triggered price rallies due to the thin trading of uranium derivatives. This recent development followed a nearly 6% rise in yellowcake prices in May, spurred by the U.S. government's announcement to bolster domestic uranium enrichment capabilities, reduce regulations, expedite reactor licensing, and uphold trade restrictions on key nuclear fuel exporters. Additionally, demand has been driven by high energy requirements from AI data centers. Concurrently, leading mining company Kazatomprom reported that its production would reach approximately 14 million pounds, nearly 20% below its forecast from late 2023.