Uranium Prices Generating Momentum

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"As a primary consumer of nuclear power, the United States' most recent positive industrial production data could provide investors and observers some guidance for what to expect with Thursday's release by the Federal Reserve."

The spot uranium price closed the week at $52.50 per pound on September 9 according to TradeTech Consultants, representing a 4% increase for the value from the previous week. Spot supply and spot demand for uranium has been on lower volumes with a high price sensitivity of new supply or emergent demand immediately reflected in the spot price for uranium. Traders and financial entities stimulated price increases over eight transactions reported with producers, traders, and financial entities participating as sellers.

Focusing on a long-term positive outlook for uranium prices, BMO Analyst, Edward Sterck believes, "in terms of potential positive catalysts the main thing needs to be reinforcement of positive sentiment from China once it announces that its safety review will allow it to continue to license new reactors. I would also like to see some buying picking up in the spot markets from organizations such as China Guangdong Nuclear Power Group and China National Nuclear Corporation." As a primary consumer of nuclear power, the United States' most recent positive industrial production data could provide investors and observers some guidance for what to expect with Thursday's release by the Federal Reserve. -Uranium Investing News

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