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Top Stories This Week: Gold and Silver Make Moves, Cameco Exec on Uranium Prices
Apr. 07, 2023 10:00AM PST
Gold spent much of this week above US$2,000, while silver passed US$25. Meanwhile, Cameco's Grant Isaac shared his thoughts on uranium at an event in Singapore.
It's been another big week for gold, and this time silver is along for the ride as well.
Gold was sitting comfortably over US$2,000 per ounce at the time of this writing on Friday (April 5) after rising as high as US$2,031.63 on Wednesday (April 5). For its part, silver managed to break the important US$25 level on Tuesday (April 4).
The latest Job Openings and Labor Turnover Survey data out of the US was in focus as gold and silver gained and the US dollar fell. The new numbers show that job openings came in at 9.93 million in February, which was lower than expected and the first time vacancies fell below 10 million since May 2021. There are also signs that the country's services sector is slowing.
The news is being interpreted as a sign the US Federal Reserve's rate hikes are having an impact. The central bank raised rates for the ninth time in a row at its last meeting, and investors are now watching closely for clues on what it may do next.
Another factor impacting gold this week is the surprise oil output cut from OPEC+. OPEC, known formally as the Organization of the Petroleum Exporting Countries, consists of 13 member countries, with an additional 10 making up OPEC+.
Turmoil in the banking sector also remains top of mind, especially given this week's warning from Jaime Dimon of JPMorgan (NYSE:JPM) — he said in his annual letter to shareholders that "the current crisis is not over yet."
Cameco exec talks uranium price drivers in Singapore
Precious metals have stolen headlines in the resource sector in the last month or so, but uranium is still a key area of interest for many. While diverse experts see bullish catalysts continuing to build, this positivity has left investors wondering why prices for the commodity aren't higher and why stocks haven't been performing better.
At the Future Facing Commodities event in Singapore this week, Grant Isaac of major producer Cameco (TSX:CCO,NYSE:CCJ) reminded industry participants that once uranium starts to move, it tends to move quickly.
Right now he sees some people waiting to invest until they see contracting for the greenfield space driving prices, but in his view getting that timing exactly right will be very difficult, if not impossible.
"There are folks that are saying, 'I just want to see the contracting for that greenfield space driving prices.' And I understand that temptation. But let me just caution you, when it moves, it moves really quickly in this business" — Grant Isaac, Cameco
Isaac noted that there's usually a security of supply event that finally pushes these people across the line — there's no telling what it could be this time, but he mentioned sanctions on Russian material or voluntary export restraint from the Russians as events that could cause a price spike similar to the one seen in 2006 and 2007.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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