FX.co ★ Uranium Rises to 17-Month High

Uranium futures surged beyond $85 per pound in January, reaching their highest level in 17 months. This uptick was driven by indications of strengthened long-term demand, prompting renewed purchases from physical funds. In the United States, regulatory restrictions on the construction and permitting processes for uranium converters and enrichers were relaxed, coupled with new agreements for constructing additional power plants. This includes a collaboration with Cameco to advance the development of Westinghouse reactors, alongside a new $2.7 billion worth of contracts awarded to Centrus and two other reactors and enrichers. These measures are part of efforts to mitigate the loss of supply from Russia following sanctions on its nuclear fuel. The anticipation of increased investment in the sector, spurred by governmental initiatives to bolster energy security and commitments to funding energy-intensive data centers, further fueled purchases by physical uranium funds. Notably, Sprott's physical uranium fund, the largest globally, recently expanded its holdings by acquiring an additional 100,000 pounds of yellowcake.