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wavepsycheon Dec 23, 2010 12:08pm
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Uranium prices to rise in 2011
Uranium prices to rise in 2011Shorts risk extended weekend gap-up risks; will some fold, cover and start a mini-squeeze?
LONDON (Commodity Online): Uranium has become one of the most sought after metals in 2010 and it may continue to be so in the coming year also.
According to analysts, demand from India and China will keep uranium prices up in 2011 also. Both these nations have chalked out big plans to set up new nuclear power plants to meet their power demands. This will help uranium prices to go up in the coming year also.
Uranium prices have risen about 20 percent since October because of a limited supply of the nuclear fuel being available to utilities, producers and traders on the spot market.
Uranium-oxide concentrate for immediate delivery reached $62.50 a pound this week. Meanwhile, the Uranium Stocks Index is soaring on Thursday, up 1.6%, adding to a six-month performance that has seen the Index double, and there could be more upside to come for uranium stocks in 2011.
Supply and demand issues have helped drive spot uranium prices as high as $62.50 in recent weeks, but prices could surge more next year.
China’s entry into the uranium market is the catalyst to drive prices higher. The country recently announced a deal with Cameco (CCJ), the largest US-listed uranium miner by market value.
Uranium prices to rise in 2011