Investing.com -- Uranium prices could climb above $100 per pound over the next three months as growing nuclear power investment and tighter fuel requirements support demand, Citi analysts said, maintaining a bullish outlook for the commodity.
The bank expects uranium to trade above $100/lb during the three months. Its longer-term uranium price benchmark has risen to a record $96/lb, continuing an uninterrupted advance that began in January 2025 and extending an uptrend dating back to 2018.
Nuclear power demand remains supported by competitive electricity economics and a growing pipeline of projects. In the U.S., several small modular reactors are already under construction, and another two or three projects could receive approval later this year.
Three nuclear plants are also being restarted, alongside power uprates supported by the Department of Energy's UPRISE program.
Military demand could become another source of uranium consumption. The U.S. Army's $2.2 billion Janus program has selected five developers to build microreactors at five military installations, with a longer-term ambition to deploy more than 20 units.
The selected reactors are expected to use HALEU and TRISO-based fuel, potentially creating new demand across uranium enrichment, fuel fabrication and other nuclear fuel-cycle services.
Under the bull scenario, assigned a 25% probability, uranium prices would average $99/lb in 2026. Junior miners failing to meet contractual commitments could be forced to purchase material aggressively in the spot market, adding upward pressure.
Stronger utility stockpiling, reactor restarts, lifetime extensions, and new nuclear projects could further increase procurement.
The bear case, given a 15% probability, puts the 2026 average at $85/lb. That outcome assumes Russian enriched uranium returns to U.S. and European markets, enrichment prices fall to around $150 per separative work unit, and at least 70% of junior mining projects scheduled for the next five years enter production successfully.
The supplied report excerpt does not specify the central-case 2026 average price target, but its near-term call remains clear: uranium above $100/lb within three months.
Citi shares its 3-month uranium outlook. Here are the price targets
Citi pushes back Fed rate cuts to May after blowout January jobs report
Goldman expects lower but still attractive stock market returns in 2026