Gold ended the week above US$1,700 after a brief dip below that level; meanwhile, uranium got mainstream attention from Elon Musk and Jim Cramer.
We've made it into September, but that doesn't seem to mean the summer doldrums are over.
The gold price was on a downtrend this week, rising as high as US$1,740 per ounce on Monday (August 29) and falling steadily until Thursday (September 1), when it dropped below US$1,700. At the time of this writing on Friday (September 2) afternoon, the yellow metal was back above US$1,700, changing hands around US$1,710.
For its part, silver fell to its lowest level since June 2020 last week. Both metals continue to face familiar headwinds, including a 20 year high in the US dollar and ongoing hawkishness from the US Federal Reserve.
With gold's drop below US$1,700 in mind, we asked our Twitter followers where they think the price will go in the fall. The poll was ongoing at the time of this writing, but most respondents said down.
Uranium gets mainstream commentary from Musk, Cramer
I heard recently from Peter Grandich of Peter Grandich & Co., who said that while there's no such thing as a sure thing, uranium is the closest he's seen in nearly four decades watching the markets. He pointed out that the sector has done a 180 over the last five years, and continues to gain momentum seemingly on a daily basis.
"There's no such thing as a sure thing ... but the closest I've ever seen in all the years I've been doing this — which is 38 — is the uranium market right now" — Peter Grandich, Peter Grandich & Co.
One example just from this week is a comment from Tesla (NASDAQ:TSLA) leader Elon Musk. In a tweet response to a Wall Street Journal article, he praised western countries for breathing new life into old nuclear plants, calling their actions "wise." Meanwhile, on his CNBC show "Mad Money," host Jim Cramer commented on Uranium Energy (NYSEAMERICAN:UEC) and said the sector as a whole is "too sizzling" for him.
Comments like that are helping to prop up more substantial developments, like the news about Japanese restarts that we discussed last week. And the industry hasn't been unaffected — vehicles like the Sprott Physical Uranium Trust (TSX:U.UN,TSX:U.U) and the Global X Uranium ETF (ARCA:URA) have made big moves recently.
However, Peter reminded investors to be careful when watching day-to-day news. While he's "staunchly bullish," he believes uranium is still a long-term story, meaning it will take time to really take off.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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