TradeTech’s Nuclear Market Review (NMR) for this past week reported no change in its Uranium Spot Price Indicator, holding it steady at $85.00 per pound U3O8. This marks the second week of a stagnant spot price after a series of price decreases.

NMR editor Treva Klingbiel reported, "While no transactions are reported and most buyers remain reluctant to commit to purchases, a few are expressing interest as the price declines of the past few months begin to wane."

Mestena Uranium is once again holding an auction for its uranium production with bids due this last Tuesday, September 11 for up to 300,000 pounds of U3O8.

There were no transactions recorded in the long-term uranium market. However, several utilities are in the process of evaluating offers or have expressed interest in securing uranium supply in the long-term market. Klingbiel explained, "A total of nine utilities are actively seeking approximately 23 million pounds U3O8 equivalent for delivery between 2007 and 2017."

Uranium industry stocks have experienced a slight rebound in the past week, as shown above by TheInvestar's Canadian Index. The steady spot price combined with generally less panic in the financial markets provided a more favorable climate. But will the recent lowered volatility of the markets continue?

Matthew Smith of TheInvestar Group reported, “It appears that investors are beginning to shrug off the mortgage and subprime worries that have plagued the market recently. This has pushed up all stocks as investors seem to be counting on Bernanke to lower rates by at least 25 basis points. Both Australia and Canada are moving up, and their currencies are also moving higher versus the dollar. First this indicates many think the Fed will lower, which is good for those buying but also it is another reason to invest in the stocks as they now become somewhat of a derivate to play the currency...even if you are buying in the US, so long as the stock also has a listing overseas.”

In an effort to evaluate and potentially alleviate the US economy's current struggles, the Federal Reserve Board meets this week to discuss a possible interest rate decrease. Though not guaranteed, a rate decrease is expected to be announced on Tuesday. Questions remain on just how much the rate would be cut.

What is Smith’s take on the Fed's interest rate control? “If Bernanke lowers it will mean good things ahead for uranium investors, but if he tries to teach speculators a lesson then it could be a long winter.”