Commodity Strategists: Uranium to Trade at $20 to $30 a Pound

Uranium may trade between $20 and $30 a pound until 2008, a level that may encourage the development of new mines, Citigroup Inc. said.

The metal, used as fuel in nuclear power plants, has traded at $29 a pound since May 11, the highest for 23 years and more than double the price in January 2004. The price of the radioactive commodity has increased on expectations reactors being built in China, India and Russia will drain stockpiles.