Why are ASX uranium shares in focus today?

ASX uranium producers’ share prices are on watch today. Here’s why.
The post Why are ASX uranium shares in focus today? appeared first on The Motley Fool Australia. –

All eyes are on ASX uranium shares today as the commodity’s spot price continues to rise amid a new international deal for nuclear-powered submarines.

The price of uranium – a commodity needed to fuel nuclear reactors – has been soaring in recent weeks.

According to data from CNBC, the price of uranium has gained more than 60% since this time last month.

As a result, ASX uranium stocks including Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN), and Energy Resources of Australia Limited (ASX: ERA), are on watch today.

What’s causing the price of uranium to surge?

The price of uranium has been soaring in recent weeks, driving up the share prices of many ASX uranium shares.

S&P Global Platts reports the price of uranium is being driven higher by funds, investors, and producers increasing their holdings in the commodity.

The publication noted some partakers in uranium-buying believe there’s a lack of supply. It also states some investors are enthused by nuclear’s potential as an energy source in the age of climate change.

The increased prices, demand, and funds’ buying the material to hold will likely bolster uranium production. It would also be good news for ASX uranium fans.

Additionally, ASX uranium enthusiasts’ interest may be peaked by a new pact between Australia, the United States, and the United Kingdom. The security partnership, named AUKUS, aims to see nuclear-powered submarines navigating Australian waters.

As ABC News has reported today, under the AUKUS pact, Australia’s submarines and their diesel-electric motors will be replaced with nuclear-powered counterparts.

The United Kingdom’s Prime Minister, Boris Johnson, was clear in saying the submarines will not be equipped with nuclear weapons.

The talk of nuclear power in Australia might boost investors’ sentiment of the uranium sector today. However, no companies have announced their involvement in the new submarines.

How are ASX uranium shares performing lately?

So far, the Deep Yellow share price has gained a massive 88% over the last 30 days.

Paladin’s stock is besting that figure, boasting a 113% gain for the same period.

Finally, the Energy Resources of Australia share price is currently 70% higher than it was this time last month.

The post Why are ASX uranium shares in focus today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Which ASX 300 shares are on the move mid-week?

Here’s why the Deep Yellow (ASX:DYL) share price is up 50% this month
Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising

Up another 13%, the Paladin Energy (ASX:PDN) share price keeps on rallying. Here’s why.
Deep Yellow (ASX:DYL) share price surges 24% to record highs

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!