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Top Stories This Week: Experts Talk Next Move for Gold, Uranium Catalysts Pile Up
Dec. 08, 2023 10:00AM PST
Gold remains in focus after pulling back from its recent all-time high; meanwhile, positive uranium drivers continue to build.
The gold price has cooled since making a new all-time high on Monday (December 4), but it remained elevated ahead of the latest US non-farm payroll data and in advance of the US Federal Reserve's meeting next week.
For investors, the key question right now is whether the yellow metal will continue rising or make a retreat. Opinions vary, but I heard recently from two experts who aren't so sure that gold is set to break higher — at least in the near term.
Let's take a look at how David Morgan of the Morgan Report explained it:
"We set a line, and gold has to achieve above that price, and it has to maintain it for three days in a row. And it also needs to be on above-average volumes. And if that occurs then we are about 80 percent assured that it is a breakout and not a fake out. We'll see — I lean toward unfortunately I think it's going to come down again, but I could be wrong" — David Morgan, the Morgan Report
Chris Vermeulen of TheTechnicalTraders.com takes a charts-based approach, and he sees US$2,089 per ounce as a key level for gold. Based on what he's been seeing, he doesn't think now is the time gold will take off.
"When a trade is crowded, meaning everyone is buying it or everyone is selling it — everybody's doing the same thing — it's typically an emotional turning point in the market. And of course, we have seen since then gold has been selling off, and the volume keeps getting higher and higher in terms of the selling pressure. So it is not a very bullish sign from a short-term standpoint for gold" — Chris Vermeulen, TheTechnicalTraders.com
It's worth noting that while both Morgan and Vermeuelen don't necessarily see gold rising higher right now, they are both bullish in the long term. Click the links above to watch the full interviews with both of them.
Uranium vote, M&A activity and COP28
The uranium sector continues to generate news at a quick pace. Here are a few recent bullet points:
- The US House of Representatives is set to vote next week on legislation that would ban imports of enriched uranium from Russia. Called the Prohibiting Russian Uranium Imports Act, it would bar Russian uranium imports 90 days after enactment, although it would allow a temporary waiver until January 2028. It will need a two-thirds majority to pass.
- Uranium M&A activity heated up this week, with ATHA Energy (CSE:SASK,OTCQB:SASKF) announcing a proposed acquisition of 92 Energy (ASX:92E,OTCQX:NTELF) and Latitude Uranium (CSE:LUR,OTCQB:LURAF). The companies say the deal will create Canada's largest uranium exploration portfolio with exposure to three key uranium jurisdictions in the country. The transaction is subject to shareholder and other approvals, and ATHA is planning to raise about C$14 million in conjunction.
- Uranium has also been making headlines since COP28, the UN's climate change conference. At the event, over 20 countries announced what they're calling a "global aspirational goal" to triple the world's nuclear energy capacity by 2050. Prices for uranium have been rising on the back of growing demand and tight supply, and the COP28 statement further bolsters the industry's bullish outlook.
Want more YouTube content? Check out our expert market commentary playlist, which features interviews with key figures in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
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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