FX.co ★ Uranium Rebounds to 6-Week High

In late December, uranium futures climbed to over $80 per pound, reaching their peak since early November. This rise was driven primarily by major physical funds reentering the market, as investors assessed long-term demand prospects for nuclear fuel. The world's largest physical uranium fund, managed by Sprott, bolstered its holdings by an additional 100,000 pounds of yellowcake. This move mirrored similar actions by other funds, sparking an uptick in speculative buying. Throughout the year, acquisitions by physical funds were aligned with expectations that escalating data center expenditures would enhance demand for nuclear fuel across the US and other leading economies. The US government announced initiatives for the construction of new nuclear power plants and relaxed regulations pertaining to the building and permitting of uranium converters and enrichers. This was supported by a partnership between Cameco and the US government, facilitating the development of Westinghouse reactors. Additionally, governments in Japan, China, and the UK have pledged to expand their construction of new nuclear reactors.