Uranium Wins More Fans As An Investment

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"Renewed buying interest on the part of speculators and hedge funds is contributing to the upward price pressure," TradeTech said. "However, this demand remains predominantly discretionary."

Uranium rose for a third consecutive week on Friday as speculators rekindled their interest in the raw material for nuclear reactor fuel, said TradeTech, a publisher of price assessments.

The price for immediate delivery rose $4, or 5 percent, to $84 a pound, TradeTech said in a weekly report. The equivalent of at least 350,000 pounds was sold in two transactions, the company said.

"Renewed buying interest on the part of speculators and hedge funds is contributing to the upward price pressure," TradeTech said. "However, this demand remains predominantly discretionary."

Purchases by hedge funds and other nonconsumers of uranium helped lift the spot price to a record $138 a pound in June, according to TradeTech's assessments. The price fell as low as $75 by the end of September as speculators sold to generate cash and some nuclear power operators temporarily withdrew from the market.

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