Xemplar Energy Corp XEPRF

Uranium Spot Drops $5 to $84

[hedgefund111]

Big multinational uranium deals provided a reminder that short-term market volatility has little effect on long-term trade relations this week, even as the metal’s glow faded after industry indicator Tradetech dropped its spot price $5 to $84 a pound U3O8. Don’t get me wrong. A $5-drop is big. Nearly six per cent. But it was fuelled by a combination of factors that, judging by the market’s hasty reaction, blurred into a panicky emergency siren. The disastrous week was a combination of an aggressive seller offering uranium at deeply discounted prices in an effort to attract buyers, at a time when bearish sentiment and volatility remain strong in the uranium market after last year’s now historic rise and fall in spot price. Oh yes, and this all happened amid massive global selloffs and growing fears of a US recession.