Leading uranium miners Kazatomprom and Cameco also announced reductions to their output forecasts in other resource-related areas.This week, the price of gold increased, once again surpassing US$3,400 an ounce.
The US dollar’s decline and the Federal Reserve’s unrest have both contributed to its increase.
For months, President Donald Trump has been putting pressure on Fed Chair Jerome Powell to lower interest rates. On Monday, August 25, Trump issued a letter on his social media platform, Truth Social, further intensifying the situation. He stated in it that he was dismissing Lisa Cook from the board of governors of the central bank because she was allegedly involved in mortgage fraud.
Cook was scheduled to serve until 2038 and has been voting to keep prices the same. She has now filed a lawsuit, requesting that Trump’s decision be deemed “unlawful and void.”
Although the Federal Reserve Act prohibits Trump from firing Fed officials at will, the action has raised doubts about whether he may legitimately fire her “for cause.”
The Fed has stated that it will follow any court ruling.
Gold market observers are closely monitoring the scenario as it continues to evolve. Low interest rates tend to benefit the yellow metal, and some analysts think that a rate decrease by the Fed could signal the beginning of its next upward surge.
The next meeting of the Fed is set for September 16–17. Despite recent statistics showing that its preferred measure of inflation, the personal consumption expenditures (PCE) price index, increased 2.6 percent year-over-year in July, there are strong expectations that it will lower rates at that time.
Core PCE, which does not include food and energy, increased by 2.9%.
Bullet briefing — US drafts new critical minerals list, uranium miners make cuts
US drafts new critical minerals list
Silver, along with potash, silicon, copper, rhenium, and lead, are suggested additions to the new draft important minerals list published by the US Department of the Interior.
The mining community is taking notice of silver’s possible inclusion as market players evaluate the metal’s possible impact. Silver-focused businesses may benefit from tax advantages and expedited processes as a result of the critical minerals list, which is intended to direct federal strategy, investment, and permitting agreements as the US attempts to lock down the supply of vital commodities.
Out of the 54 minerals in the draft list, 50 have been added based on the findings of an economic effects assessment. Zirconium is present due to the possibility of a single point of failure in the US supply chain, and three were chosen based on a qualitative assessment.
The list is updated every three years and was established following a Trump executive order in 2017.
The draft essential minerals list was made available for public discussion on Tuesday, August 26, and comments will be taken for 30 days. It is important to note that silver and the other suggested additions are not yet officially critical minerals. It is also important to note that two commodities—arsenic and tellurium—may lose their essential mineral designation.
Depending on national requirements, critical minerals listings differ from one nation to the next, yet they frequently have similarities. A group of people involved in the silver business, including many large miners, wrote to Canada’s minister of energy and natural resources in January 2024 to suggest that silver be added to the country’s list of vital minerals. As of right now, silver has not been added.
Uranium miners cut production guidance
In an effort to lessen its dependency on imports of the energy fuel, the Swedish government has suggested lifting the prohibition on uranium mining.
Although uranium mining has been prohibited in Sweden since 2018, the nation still has six active reactors and uses nuclear energy to provide about one-third of its electricity.
As more countries turn to nuclear power to meet their energy demands, the prohibition is scheduled to be lifted on January 1, 2026. It also coincides with concerns about supply because miners have been slow to ramp up after Fukushima, despite increased demand and prices emerging from a years-long slump.
Kazatomprom said just last week that it was reducing its 2026 output objective by roughly 8 million pounds in comparison to previous projections. The company is not ready to go back to 100% levels, despite seeing stability in long-term uranium prices and solid sector fundamentals.
Similar remarks were made this week by Cameco (TSX:CCO, NYSE:CCJ), which stated that delays in moving the McArthur River mine in Saskatchewan to other mining sites may affect its 2025 output. Although Cigar Lake may be able to partially offset that loss, production will be reduced by 4 to 5 million pounds.
