This Week’s Top Stories: Uranium’s East/West Divide Intensifies, Central Banks Consider Gold

Gold prices experienced a rollercoaster ride this week, hitting a high of US$2,366 per ounce before settling back down to US$2,325 on Friday morning. The fluctuation came as US jobless claims dropped by 5,000 and single-family housing starts fell by 5.2 percent in May, sparking expectations of an interest rate cut in the fall.

Central banks have been a key player in supporting gold prices, with a new survey from the World Gold Council revealing that 29 percent of central banks plan to increase their gold reserves in the next 12 months, the highest level since 2018. Reasons cited for holding gold include its role as a long-term store of value, an inflation hedge, and a portfolio diversifier with no default risk.

While central banks have traditionally been big buyers of gold, the survey did not include information on China, a major player in the market. Reports that China did not add any gold to its reserves in May have raised speculation about the country’s strategy moving forward.

In other mining news, French nuclear fuel cycle company Orano has lost its mining permit for the Imouraren uranium project in Niger, a significant uranium deposit with reserves of over 174,000 tons. Orano’s permit was revoked due to a lack of development progress, with Niger signaling a shift towards Russian control of assets in the country.

Meanwhile, Canada has blocked the sale of rare earths to China, as ASX-listed company Vital Metals announced a new deal to sell stockpiled material to a Canadian organization. The move reflects Canada’s efforts to limit Chinese involvement in its critical minerals sector, amid concerns over diversifying supply chains.