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Top Stories This Week: Gold Price Dips, Why This Uranium Bull Cycle is Different
Jun. 30, 2023 10:00AM PST
The gold price fell briefly below the US$1,900 per ounce mark this week. Meanwhile, Justin Huhn of Uranium Insider explained why the current uranium bull cycle is "night and day better" than the last.
The gold price trended lower this week, dipping briefly below US$1,900 per ounce midway through the period. The yellow metal remains historically high, but as the summer months begin it's fallen from the peaks seen earlier in 2023.
US Federal Reserve Chair Jerome Powell spoke on Wednesday (June 28) at a monetary policy forum in Portugal, and he said there's still a risk of doing too little to curb inflation; he also noted that he doesn't see inflation returning to the targeted 2 percent level this year or even next year. However, he remained as cagey as ever about the Fed's future plans, saying only that most officials expect two more rate hikes this year. It's possible that these potential increases could be consecutive.
The Fed left rates flat at 5 to 5.25 percent at its most recent meeting, and will convene again from July 25 to 26.
This uranium bull cycle is "night and day different"
The uranium sector continues to attract interest from investors as the spot price moves steadily higher, and I recently had the chance to speak with Justin Huhn of Uranium Insider, who gave a great overview of the market.
During the conversation he honed in on supply-side concerns, explaining how Kazakhstan's deepening relationships with Russia and China could cause major problems down the road for western utilities. In addition to that, Huhn spoke about the differences between the last uranium bull market and the cycle we're in today.
"The only thing we're not seeing right now is capital flows due to a general risk-off environment in the capital markets," he explained. "Will that turn? Nobody can predict that. I believe that it will eventually, and I also think that this market is going to offer a unique opportunity where you actually have a rising commodity environment, even though we might be going into some sort of deflationary environment, at least for the short and near term."
The full interview with Huhn also includes his thoughts on prices and stocks. You can watch it here.
Coming soon — Fastmarkets lithium interviews
Fastmarkets' annual Lithium Supply and Battery Raw Materials event just wrapped up, and next week we'll be publishing interviews from the show. INN's Priscila Barrera was on the floor, and she's already written about the key themes that were discussed, such as future trends in battery chemistry and the growing gulf between supply and demand for battery raw materials.
Stay tuned for more coverage of the Fastmarkets conference, including interviews with lithium experts Joe Lowry, Howard Klein, Rodney Hooper and more. You can also click here and here for panel recaps.
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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