Gold Prices Soar Past $3400, Silver Included in Draft US Critical Minerals Catalogue
In a series of recent events, the economy, energy sector, and political landscape have seen significant shifts.
President Donald Trump's intention to remove Lisa Cook from her position on the Federal Reserve's board of governors has sparked questions about his ability to do so. Trump, in a letter posted on his social media platform, cited allegations of mortgage fraud as the reason for Cook's removal. However, the Federal Reserve Act does not allow Trump to remove Fed officials at will, but he can do so "for cause." Cook, who voted to hold rates steady, has filed a lawsuit asking for Trump's order to be declared "unlawful and void."
Meanwhile, the US Department of the Interior has released a new draft critical minerals list, including silver, potash, silicon, copper, rhenium, lead, and more. The list, updated every three years, now includes 54 minerals, with 50 based on an economic effects assessment, 3 on qualitative evaluation, and zirconium due to a single point of failure in the US supply chain. However, silver and other recommended additions aren't officially critical minerals yet, as the draft list is open for public comment until September 26.
The rise in gold price this week has surpassed US$3,400 per ounce, attributed to US dollar weakness and Federal Reserve turmoil. The Fed's next meeting is scheduled for September 16 to 17, and expectations are high that it will cut rates at that time. In July, the Fed's preferred measure of inflation, the personal consumption expenditures (PCE) price index, was up 2.6 percent year-on-year, with the core PCE, which excludes food and energy, seeing a similar rise.
Elsewhere, the US Department of Energy reported that Cameco expects its 2025 output to be impacted by delays in transitioning the McArthur River mine to new mining areas, with production 4 million to 5 million pounds lower. This could potentially be partially offset by Cigar Lake, but no definitive information is available at this time.
Sweden's government has proposed the removal of the country's ban on uranium mining, aiming to reduce its reliance on imports of the energy fuel. Uranium mining has been banned in Sweden since 2018, but the country generates around one-third of its power from nuclear energy. The ban is set to be removed on January 1, 2026.
In another development, Uranium miners have been slow to ramp up production post-Fukushima, with Kazatomprom lowering its 2026 production target by about 8 million pounds. This could potentially impact the global supply of uranium, a key component in nuclear power plants.
Lastly, two commodities, arsenic and tellurium, have been recommended for removal from the critical minerals list. No available information identifies a person who filed a lawsuit against President Trump in August 2022 after being removed from a position on the Federal Reserve's executive committee.
These developments underscore the dynamic nature of the global economy, energy sector, and political landscape, with numerous factors influencing each other in complex ways.
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