\u2018I think the next move up in gold is going to require the rate cut \u2014 we\u2019ve had the expectation of the rate cut built into the price, that\u2019s why we\u2019ve gone up to new highs,\u2019 she said at the Vancouver Resource Investment Conference (VRIC). \u2018But we\u2019re still really in that sideways trend \u2026 I think actually breaking through it will require the rate cut.\u2019<\/p>\n
Looking over to uranium, Preston said that although the price has moved substantially in recent months, the commodity\u2019s supply\/demand dynamics are such that it could \u2018easily\u2019 jump to US$140 per pound overnight. <\/p>\n
In terms of supply, uranium has become a seller\u2019s market. While companies are working to bring new mines online and restart idled production, the process won\u2019t be quick. She sees some relief coming from hedge funds that bought uranium at low prices and are now ready to sell, but emphasized that the volumes they\u2019ll be able to provide will be small. <\/p>\n
There\u2019s also the east\/west divide in the sector. Preston noted that the US Senate is likely to approve a ban on Russian uranium imports \u2014 and if that happens, Russia will probably preemptively cut off sales of the material to the US. <\/p>\n
\u2018There just isn\u2019t supply \u2026 despite a few little setbacks that maybe create a trading range for a little while here to stabilize this huge price run that we\u2019ve seen, I think (the price) will still go higher. I\u2019m very confident that the price is going to end 2024 higher than the insane price that it began the year at. Because it\u2019s not actually insane. It\u2019s a valid representation of the lack of this essential commodity that the utilities need,\u2019 she explained during the conversation. <\/p>\n
In Preston\u2019s view, the safest uranium stocks right now are those with growing US production \u2014 those include Uranium Energy (NYSEAMERICAN:UEC), enCore Energy (TSXV:EU,NASDAQ:EU) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU). <\/p>\n
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n \u2018I think the next move up in gold is going to require the rate cut \u2014 we\u2019ve had the expectation of the rate cut built into the price, that\u2019s why we\u2019ve gone up to new highs,\u2019 she said at the Vancouver Resource Investment Conference (VRIC). \u2018But we\u2019re still really in that sideways trend \u2026 I […]<\/p>\n","protected":false},"author":0,"featured_media":487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=486"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/487"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}