Commodity Market Review: Uranium Outperforms Most Other Commodities


  • With the reemergence of  coronavirus cases and consumers growing less confident, the price of gold has declined. 
  • With the decline in gold market, silver has seen a notable increase, with investors hoping it will reach $18.00.
  • Meanwhile, Uranium is able to make gains as a significant power generation fuel.

Gold Market Fluctuates With Consumer Confidence

Since the start of the pandemic, gold has been in high demand. With the stock market and economies relatively unstable, many people looked for this stability in gold. Initially, gold prices rallied after they bottomed out with stocks. This rally came amidst expectations that the fiscal stimulus measures and aggressive Fed easing would create economic activity and inflation. Since the initial crash, gold has regained its value. 

During early trading on Monday, gold prices declined to $1,728.60, down 0.12%. Gold recently slipped below an ascending trend line, but was restricted by a two-day-old symmetrical triangle. In other words, despite the price movements, gold is not as currently volatile as it may seem. However, as economies reopened and coronavirus cases spiked, confidence in the commodity will decline. This can contribute to the current decline XAU is experiencing. 

Silver: Investor’s Alternative to Gold

The market’s decline in confidence in gold has led to investors looking at other commodities, such as silver. Since late-February, silver prices have surged, climbing just shy of 60% from March’s low price. Silver prices are attempting to reach $18.00, as they currently hover around $17.60. 

Currently, the global markets have remained tense. The FED’s economic forecast predicted that the US GDP will shrink by about 6.5% in 2020. The Fed Reserve also said that the unemployment rate will be at 9.3% at the end of this year. Many of these economic worries would result in a major sell off, but as gold is stagnating, silver is able to show strength amid a sell-off.  

Uranium Beats Out Other Commodities

In light of COVID-19, Uranium, a key power generation fuel, witnessed a notable price increase. Currently, the metal is priced at $33.25 per pound. Despite many commodities experiencing lower demand, Uranium’s consumption has remained stable. In addition, with the closing of mines amidst coronavirus, demand for the metal has increased, prompting the increase in price. As reported by Yahoo Finance, the radioactive metal has risen nearly $10/LBS. This equates to more than 35% so far this year. Currently, the price is steadying, but as mines begin to open the price of uranium may continue to increase. 


I Know First’s Bullish Forecasts

market forecast

On May 26, 2020, I Know First issued predictions for commodities for a 14 day time horizon. The predictions included XAG (silver), and XAU (gold). The forecast comes with a positive signal of 0.28 for XAG and a negative signal of 0.01 for XAG, and with a predictability indicator of 0.16 for XAG and 0.26 for XAU. Over the 14 day trading period, XAG gained 2.39% and XAU declined by 1.14%, in line with the I Know First forecast. 

market forecast

On May 15, 2020, we also issued a month long commodities prediction. This prediction included Uranium. The commodity was forecasted with a positive signal of 0.40 and predictability of 0.30. At the end of the month period, Uranium gained 12.99%, in good agreement with our forecast. 

Algorithmic Stock Forecast: The table is a commodities forecast produced by I Know First’s algorithm. Only the relevant commodities have been included in the table. The table arranges the boxes according to their respective signal and predictability values. A green box represents a positive forecast, suggesting a long position, while a red represents a negative forecast, suggesting a short position.

Please note – for trading decisions, use the most recent forecast. Get today’s forecast and top commodities picks.

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