Gold Breaks US$2,000 and Uranium Passes US$80 For First Time in 15 Years
Gold and uranium have both set new price records, as gold has broken the US$2,000 mark for the first time and uranium has passed the US$80 mark for the first time since 2005.
Analysts have attributed the increases in the two commodities to the current economic uncertainty stemming from COVID-19 and the potential for inflation as governments and central banks show no signs of easing back on stimulus packages.
The price of gold has been driven by investors seeking a safe-haven investment due to market volatility in recent months. This steady demand has pushed the price of the precious metal up to US$2,072.10 an ounce at the beginning of August, which is the highest level since early March.
Similarly, uranium prices have been rallying since April and have now passed the US$80 mark for the first time in 15 years. Analysts have attributed the increase in uranium prices to a recovery in demand from nuclear utilities and civil construction markets in China and the US.
Despite the heightened demand, both commodities are likely to remain volatile as investors weigh up the impact of the pandemic on the global economy.
Nevertheless, these price increases indicate that the demand for gold and uranium is strong and will continue to remain buoyant in the short term. This could open the door for mining companies to increase production levels as the market looks set to remain strong for the foreseeable future.
As such, both gold and uranium investors should remain cautiously optimistic for the remainder of 2020 and beyond.